China Achieves Breakthrough with Five Chip Super-Factories – After the USA Led Semiconductors for Decades | HO

In today’s technology landscape, Nvidia—a private company that doesn’t directly manufacture chips—has become a coveted asset that both the USA and China are eager to control. Washington wants to keep Nvidia as a strategic asset, while Beijing is exploring every possible way to access the company’s technology—whether through market channels, investments, or direct means.

However, China is not solely dependent on acquiring foreign technology. For over a decade, the country has pursued a long-term strategy and carefully invested in key components of the semiconductor industry. Despite a series of US sanctions, China remains committed to its goal of semiconductor industry independence—a dream that is becoming increasingly tangible with the growing number of domestic chip factories.

How the USA Tries to Maintain Its Dominance in the Advanced Semiconductor Industry and Limit China’s Ability to Develop Its Own – ABC News

As a country that was almost entirely dependent on imported chips, China now holds strategic trump cards in the global chip race—a game that is not just about billions in revenue, but also about technological, military, and economic power in the 21st century. China’s semiconductor industry is growing so rapidly that some Western experts admit that, if left unchecked, China will redefine the global semiconductor industry within a decade.

From SMIC with its ambition to catch up at the 7nm level, to YMTC’s breakthroughs in NAND flash, and companies like CXMT and Hua Hong quietly thriving in various market segments—China is not just on the sidelines, but rewriting the rules of the game.

The Five Largest Semiconductor Factories in China

China achieves a breakthrough with five chip super-factories—after decades of US leadership in semiconductors.

Let’s explore the five largest semiconductor factories in China that are driving this rapid breakthrough.

SMIC Shanghai Fab:

Located on the bustling Zhangjiang Road in the Pudong New Area, the SMIC Shanghai Fab is not just a chip factory, but the heart of China’s strategy for the entire semiconductor industry. As SMIC’s first and largest factory, it will become the world’s third-largest chip factory after TSMC and Samsung by 2024. The plant operates two parallel production lines for 200mm and 300mm wafers, with an estimated capacity of about 300,000 8-inch-equivalent wafers per month. Notably, the 7-nanometer Kirin 9000S chip for Huawei’s Mate 60 Pro smartphone was successfully produced here using only DUV equipment, demonstrating the company’s technological capabilities despite US restrictions.

SMIC Beijing Fab:

This facility, known as SMIC Jing Chaip, is developing into one of the most advanced chip manufacturing centers in China. It focuses on advanced chip technologies such as 14- and 7-nanometer wafers and has a production capacity of around 250,000 8-inch wafers per month. This factory is crucial for reducing China’s dependence on foreign manufacturing sites, especially in light of increasing trade tensions with the USA.

YMTC Wuhan Fab:

This factory in Wuhan is reshaping the global memory industry. YMTC specializes in advanced 3D NAND memory chips and has made significant progress. By 2022, YMTC will have captured a 6% share of the global NAND market. With the ambitious goal of reaching a capacity of one million wafers per month by 2030, YMTC is a strategic stronghold for China’s self-sufficient data storage strategy.

CXMT Hefei Fab:

This factory has become a new symbol of China’s semiconductor ambitions and specializes in DRAM memory chips. With a production capacity of about 120,000 8-inch wafers per month, CXMT not only meets domestic demand but also positions itself as a competitor in the global DRAM market.

Hua Hong Wuxi Fab:

This factory in Jiangsu Province is Hua Hong’s largest 300mm wafer manufacturing plant and focuses on modern chip technologies. With a capacity of 94,500 8-inch wafer equivalents per month, it plays a key role in manufacturing chips for automotive electronics and IoT applications, thus solidifying Hua Hong’s position in these booming sectors.

Silicon Hegemon: Could China Take Over Taiwan’s Semiconductor Industry Without Invading? | Baker Institute

As the factories in Shanghai, Beijing, Wuhan, Hefei, and Wuxi ramp up production, the question is less about whether China is capable of manufacturing advanced chips, but rather how many and how quickly they can produce them. The world is currently witnessing a quiet but massive shift in the semiconductor industry, in which China is not just participating, but actively reshaping the global balance of power.

The consequences of this high-stakes game go beyond economics; they impact national security, technological superiority, and the future of global innovation. As the semiconductor race continues, more is at stake than ever before, and the outcome will determine the technological landscape of the 21st century.

Who do you think will emerge as the winner from this semiconductor showdown? The answer could redefine the balance of power in the years to come.