Chip War | Huahong Group Reportedly Prepares to Produce 7-Nanometer Chips

Reuters reports, citing sources, that China’s second-largest chip manufacturer, Hua Hong Group, has developed advanced chip manufacturing technology capable of producing AI chips. Its foundry division, Huahong Microelectronics, plans to reach an initial monthly capacity of several thousand 7-nanometer wafers by the end of the year.

Sources say Huahong Microelectronics is preparing to launch 7-nanometer process technology at its Shanghai factory, making it the second Chinese chip maker to master such advanced technology. Chinese tech giant Huawei has been collaborating with this manufacturer on 7-nanometer technology.

According to reports, Huahong Microelectronics’ 7-nanometer chip development at Hua Hong Fab 6 began last year, supported by domestic equipment suppliers including SiCarrier. SiCarrier tested its equipment at a facility in Shenzhen last year.

Sources indicate that Huahong Microelectronics aims to achieve an initial capacity of several thousand 7-nanometer wafers per month by the end of this year, with plans to further expand capacity afterward. Chinese graphics processor designer Biren Technology (06082) is currently using Huahong Microelectronics’ 7-nanometer production line for tape-out, the process of finalizing chip designs and sending them to the wafer fab for initial production.

Currently, China’s largest foundry, SMIC (00981), is the only domestic manufacturer capable of producing 7-nanometer process chips. Analysts say SMIC uses immersion lithography machines from Dutch equipment supplier ASML to produce 7-nanometer chips, but its yield remains relatively low.