The Chinese semiconductor industry is facing a critical juncture, necessitating a shift towards domestically developed chip-design technologies independent of advanced manufacturing processes. This strategic imperative comes as the industry grapples with escalating US technology restrictions, according to leading semiconductor expert Wei Shaojun, a professor at Tsinghua University’s School of Integrated Circuits and vice-president of the China Semiconductor Industry Association.
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Speaking at the China Integrated Circuit Design Industry Exhibition in Shanghai, Professor Wei emphasized the urgency of establishing a self-reliant technological ecosystem. He underscored the restricted access to external advanced resources and the narrowing range of available manufacturing technologies, highlighting the significant impact of US sanctions on China’s semiconductor sector.
Navigating US Chip Restrictions Through Innovation
Professor Wei’s call for intensified domestic innovation reflects growing concerns within the Chinese IC industry regarding the stringent US chip restrictions. Recent measures implemented by the US government include export controls on crucial chipmaking equipment and software, alongside the addition of numerous Chinese semiconductor companies to the Entity List, effectively barring them from engaging with US businesses.
These restrictions have significantly hampered access to advanced electronic design automation (EDA) software and chip lithography machines, further exacerbating the challenges faced by China’s domestic chip design sector. Chen Zenghui, chief technology officer at Shanghai-based EDA firm PhySim Electricity Technology, confirmed the impact of these restrictions, stating that China is effectively blocked from accessing advanced processing technologies in both hardware and software.
Exploring Alternative Paths to Advancement
To overcome these obstacles, Professor Wei proposed focusing on new design architectures and microsystem integration as key pathways to innovation. These strategies aim to propel China’s semiconductor industry beyond its current position in the mid- to low-end of the global value chain. Chen Zenghui suggested that 3D stacking and heterogeneous integration, combining chips with lower processing power to achieve performance comparable to advanced nodes, offer a viable long-term solution to circumvent sanctions.
Market Trends and Future Outlook
Despite these challenges, China’s chip-design sales are projected to reach substantial figures in the coming year. However, this growth may lag behind the global semiconductor industry’s anticipated growth rate. The Chinese IC design market is currently dominated by chips for communications and consumer electronics, while computer processors hold a smaller market share.
Professor Wei identified the lack of groundbreaking “killer” applications as a significant challenge for Chinese chip-design enterprises. He noted that emerging sectors like artificial intelligence and electric vehicles have yet to achieve widespread mainstream adoption. Furthermore, concerns surrounding US sanctions have prompted a surge in China’s semiconductor imports as companies rush to stockpile ICs. This trend underscores the continued reliance on foreign suppliers and the urgent need for self-sufficiency in the semiconductor industry.
Conclusion: A Call for Self-Reliance
In conclusion, the Chinese semiconductor industry faces significant hurdles due to escalating US technology restrictions. However, the current challenges also present an opportunity to foster innovation and establish a self-reliant technological ecosystem. By prioritizing indigenous chip-design technologies and exploring alternative pathways to advancement, China can strive to overcome these obstacles and secure its position in the global semiconductor landscape. The focus on domestic innovation, coupled with strategic investments in research and development, will be crucial for navigating the evolving geopolitical landscape and ensuring the long-term sustainability of China’s semiconductor industry.
