SMIC, the largest contract maker of semiconductors in China, announced this month that it would start commercial production of chips using its 14 nm FinFET manufacturing technology by the end of the year. This is the first FinFET manufacturing line in China, making it a notable development for a country that already houses a significant number of fabs, as the world's leading-edge manufacturers never installed FinFET technology in China for geopolitical and IP reasons. SMIC in turn seems to expect a rather rapid ramp of its 14 nm node, as it anticipates the new manufacturing line will meaningfully contribute to its revenue before the end of the year.

According to SMIC, their 14 nm FinFET manufacturing technology was developed entirely in-house and is expected to significantly increase transistor density, increase performance, and lower power consumption of chips when compared to devices made using the company’s 28 nm process that relies on planar transistors. Earlier this year it was expected that SMIC would start production of 14 nm chips already in the first half of 2019, so the firm seems to be a little behind the schedule. Nonetheless, an in-house FinFET process technology is quite a breakthrough for a relatively small company that puts it into a club with just five other foundries with FinFET technologies.

One interesting thing that SMIC said about its 14 nm FinFET volume ramp is that it expects the process to have a significant revenue contribution already by the end of the year. Meanwhile, keeping in mind that right now SMIC only has two relatively small 300-mm HVM fabs (which are currently used for 28 nm – 65 nm nodes) that are heavily utilized generating 40 ~ 49% of the company’s revenue (in Q1/Q2 2019), it is difficult to imagine SMIC making loads of 14 nm chips in 2019.

Overview of SMIC's Fabs
  Process Technologies Capacity
Wafer Starts per Month
BJ 200mm 90 nm - 150 nm 50,000 Beijing, China
300mm 28 nm - 65 nm 35,000
SH 200 mm 90 nm - 350 nm 120,000 Shanghai ,China
300 mm 28 nm - 65 nm 20,000
SZ 200 mm 90 nm - 350 nm 60,000 Shenzhen, China
300 mm 28 nm - 65 m 3,000
TJ 200 mm 90 nm - 350 nm 50,000 Tianjin, China
LF 200 mm 90 nm - 180 nm 50,000 Avezzano, Italy

Earlier this year the company completed construction of its $10 billion SMIC South FinFET Fab, which will be used for its leading-edge manufacturing technologies and began moving in the equipment. Once the fab is ready for commercial operations, SMIC will be able to considerably increase production of chips using its 14 nm and then 12 nm FinFET fabrication technologies.

SMIC’s longer-term plans include 10 nm and 7 nm manufacturing processes. The latter is expected to require usage of extreme ultraviolet lithography tools, so last year SMIC acquired an EUV step-and-scan system from ASML for $120 million, which was to be delivered in 2019.

Related Reading:

Sources: SMIC, DigiTimes

Comments Locked


View All Comments

  • shabby - Friday, August 16, 2019 - link

    Looks like they're catching up to intel...
  • dullard - Friday, August 16, 2019 - link

    With Intel in the customer's eyes as the premium company, and SMIC as the low-cost company, that would leave very little room for AMD. Until AMD learns to sell themselves as a high-end premium product at a premium price, they risk losing out to companies like SMIC.
  • twtech - Friday, August 16, 2019 - link

    AMD no longer has their own fabs. And people are not looking at the current generation of Ryzen chips as a low-cost alternative - more like the faster alternative that happens to also be a bit cheaper.
  • Opencg - Saturday, August 17, 2019 - link

    The real question is how will their 14nm perform. It's nice to have a nm but as we know there are many factors at play. Intels 14nm is still pushing higher single core than tsmc 7nm.

    Another question is how advanced of an architecture will they produce on this 14nm. I think amd is not going to liscense any current gen architecture in china anymore. It is largely an intellectual property and theft is a concern. This is the real area where china will struggle imo.
  • dullard - Monday, August 19, 2019 - link

    Fabs have nothing to do with it. If they produce a usable CPU, in China, at low Chinese prices, who then in Asia or Africa would buy AMD's CPUs? Why pay more unless AMD makes a highly compelling non-price based market niche for themselves?
  • dullard - Monday, August 19, 2019 - link

  • Alexvrb - Friday, August 16, 2019 - link

    SMIC is a fab company. AMD is a chip designer. The two aren't competitors in the slightest.

    Now, if you're talking about GF, yes - but GF has 12nm as well as various FD-SOI processes (including upcoming 12FDX). So they'll probably be OK for the foreseeable future.
  • bubblyboo - Friday, August 16, 2019 - link

    You sound like that one Intel fanboy that's always on the site.
  • nandnandnand - Saturday, August 17, 2019 - link

    At least they have an appropriate username. Thanks for the incite, dullard.
  • Alexvrb - Sunday, August 18, 2019 - link


Log in

Don't have an account? Sign up now