Semiconductor Manufacturing International Corp (SMIC), a leading semiconductor manufacturer globally, is reportedly facing challenges in achieving high production yield for an artificial intelligence (AI) chip developed for Huawei Technologies. The chip, known as Ascend 910B, is considered to be highly efficient in AI training, rivaling Nvidia’s A100.
Despite initial reports suggesting difficulties in production, calculations indicate that Huawei can still reach its target of manufacturing between 400,000 and 500,000 Ascend 910B chips this year. SMIC has been leveraging its subsidiary, Semiconductor Manufacturing South China Corp (SMSC), to produce chips of varying nanometer sizes.
SMSC’s production capabilities have the potential to meet Huawei’s chip manufacturing goals, even with a 20% yield rate for the Ascend 910B. The company’s focus on developing advanced technology nodes has faced challenges due to U.S. restrictions on exports to SMIC and its affiliates.
The U.S. Department of Commerce’s Entity List designation for SMIC and SMSC has impacted their ability to access key technologies necessary for semiconductor production. This has led to disruptions in the supply chain, with U.S. suppliers being restricted from providing essential materials and equipment to the Chinese chipmaker.
While uncertainties remain regarding the future expansion of SMIC and SMSC’s production capacity, there are possibilities for acquiring advanced lithography machines that could support their chip manufacturing efforts. The U.S. government’s export controls and sanctions on Chinese tech companies like SMIC continue to shape the landscape of the semiconductor industry.
Despite these challenges, industry analysts see the potential for Chinese companies to develop domestic alternatives and reduce reliance on foreign technologies. The geopolitics surrounding chip manufacturing and trade have raised questions about the long-term implications for companies like Huawei and their ability to compete in the global market.
The path forward for SMIC, SMSC, and Huawei involves navigating through regulatory hurdles and technological constraints while striving to achieve self-sufficiency in semiconductor manufacturing. The impact of U.S. sanctions and limitations on technology transfers will shape the competitive dynamics of the semiconductor industry in the years to come.
As Huawei and its partners work to overcome these challenges, the evolution of AI chip technologies and the demand for advanced semiconductors will continue to drive innovation and competition in the global semiconductor market.
Article Source
https://asiatimes.com/2024/06/low-yield-for-smic-huawei-nvidia-knockoff-so-what/
