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Chip Production in 7 nm And 5 nm Processes Chinese Chip Companies Plan Significant Expansion of Modern Production Technologies

From Sebastian Gerstl | Translated by AI 2 min Reading Time

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According to Asian media, leading Chinese semiconductor manufacturers, in particular SMIC and Hua Hong Semiconductor, want to significantly increase their production of chips using the 7 nm and 5 nm process. The aim is to produce 100,000 wafers within two years.

SMIC is at the forefront of China's push to manufacture chips using advanced processes. The company has already produced 7nm chips using less advanced equipment; according to Nikkei Asia, it is now working on a technology described as "5-nanometer-like".(Image: SMIC)
SMIC is at the forefront of China's push to manufacture chips using advanced processes. The company has already produced 7nm chips using less advanced equipment; according to Nikkei Asia, it is now working on a technology described as "5-nanometer-like".
(Image: SMIC)

China is pressing ahead with the expansion of its semiconductor production in the advanced technology sector. This was reported by the business newspaper Nikkei Asia, citing internal sources and local analysts. According to the report, leading manufacturers want to significantly increase their capacities for chips with structure widths of 7 nanometers and in some cases 5 nanometers.

The monthly production volume is expected to increase to 100,000 wafers within one to two years. According to the report, this figure is currently less than 20,000, which are mainly produced by SMIC in the 7 nm range. The aim is even to build up a further 500,000 wafers in capacity by 2030.

The background to this is the increasing demand for computing power for applications in the field of artificial intelligence. The expansion of production is intended to help meet the growing demand in Germany and reduce dependence on foreign suppliers.

SMIC, Hua Hong And Huawei As Key Players

One of the driving forces is the contract manufacturer SMIC. The company has already produced 7-nanometer chips with comparatively older systems and is working on more advanced processes that should come close to 5-nanometer technologies.

According to the report, Hua Hong Semiconductor, which has previously focused more on more mature manufacturing processes, is also moving into the production of more modern structures. The companies are supported by central and local authorities, which are driving forward the expansion of domestic production.

The technology group Huawei also plays an important role. The company is planning several new processors in the Ascend series for 2026, including variants with high-performance memory developed in-house. In addition, further production and development sites are being built in southern China, which are geared towards modern chip structures.

Expansion Despite Export Restrictions

The expansion is taking place against the backdrop of ongoing US export controls, which are making access to modern production technology more difficult. It therefore remains to be seen whether the targeted production goals can be achieved in full.

According to market research company TrendForce SMIC ranked third worldwide in foundry sales behind TSMC and Samsung Electronics in the third quarter of 2025. Hua Hong was in seventh place. The planned expansion of capacities would further strengthen the international position of Chinese suppliers.(sg)

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