The miracle and cost of 5nm in China: SMIC circumvents sanctions with DUV lithography
Despite strict international lockdowns, SMIC has managed to manufacture 5nm class microchips using DUV machinery through complex multiple patterning techniques.
The miracle and cost of 5nm in China: SMIC circumvents sanctions with DUV lithography
China's largest semiconductor manufacturer, SMIC (Semiconductor Manufacturing International Corporation), has marked a historic milestone in the race for technological sovereignty by consolidating its production capacity for advanced microchips at the 5 nanometer (N+3) node. What is surprising about this achievement is not only the technology itself, but the method used to achieve it under severe commercial restrictions.
For years, international sanctions have blocked China's access to extreme ultraviolet (EUV) lithography machines manufactured by the Dutch company ASML, considered essential tools for creating next-generation chips. To overcome this obstacle, SMIC has had to push previous generation deep ultraviolet (DUV) equipment to its absolute limits.
The technical feat of multiple patterning
To achieve the characteristic 5nm transistor density without the precision of the EUV spectrum, SMIC engineers have resorted to complex techniques known as multiple patterning. This process requires exposing the silicon wafer to multiple passes of light to define the finest circuits.
Although technically brilliant, this approach carries enormous operational disadvantages:
- Increased complexity: The manufacturing cycle is substantially longer and prone to failure.
- Equipment wear: The intensive use of DUV machinery shortens the useful life of the systems.
- Reduced efficiency rate (Yield Rate): The percentage of functional chips per wafer is drastically lower compared to those manufactured by direct competitors such as TSMC using EUV.
An unsustainable economic cost without the State
Manufacturing microchips using DUV multiple patterning is extremely expensive. Industry experts estimate that producing a 5nm chip this way can be up to 50% more expensive than industry standard methods.
This cost overrun is only viable thanks to massive subsidies from the Chinese government, which directly funds SMIC's operation in its quest to achieve technological self-sufficiency and protect the national AI and defense infrastructure against future external vetoes.
Despite its high price tag, this achievement demonstrates that China has found a path to continue its technological advancement, forcing global powers to reevaluate the effectiveness of long-term hardware trade blockades.
