China has begun mass producing 7 nm microchips despite ongoing US sanctions, a development highlighted in a recent news report.
Meanwhile, reports from the Western semiconductor ecosystem indicate that 5 nm production has entered the mass market, with 3 nm chips also being developed. Western and Taiwanese fabs are expanding their use of EUV (extreme ultraviolet) lithography to manufacture 7 nm devices, while China continues to rely on lithography equipment based on DUV (deep ultraviolet) technology. This choice increases production costs, which the Chinese industry offsets through government subsidies and strategic funding programs.
Analyst Dylan Patel argues that Western sanction measures dubbed elimination sanctions merely slow progress rather than stop innovation outright in the Chinese semiconductor sector. He contends that a comprehensive ban on access to the necessary equipment and materials would be required to halt the emergence of 5 nm processes and related semiconductor advancements within the PRC, a view echoed in broader industry discussions about supply chain security and trade policy.
In a move aligned with evolving policy, the United States and the Netherlands are preparing to implement new restrictions on Chinese chip manufacturers slated for July, signaling a tightening of export controls aimed at limiting access to advanced fabrication technologies.
Earlier coverage by Bloomberg highlighted perceived crises and vulnerabilities within the global microchip market, noting how geopolitical and policy developments are shaping supply dynamics and investment decisions across North American and Asian markets.