Shanghai Micro Electronics Equipment Group (SMEE), a developer of lithography tools based in China, has announced its first lithography machine capable of processing wafers using a 28 nm process technology, as reported by Bloomberg. This breakthrough represents a major leap in China’s pursuit to bridge the technological gap in the global chip industry. However, the device is still behind tools manufactured by market leader ASML, and it is unclear when SMEE will be able to produce these scanners in significant volumes.
The announcement did not come without some oddities. The news about this new lithography machine was first shared by the Zhangjiang Group, a state-owned company that controls SMEE’s fourth-largest shareholder, in a post on WeChat, which caused its shares to rise by 8%. But after that, the company backtracked and removed any mention of the 28nm-capable tool, focusing instead on the fact that SMEE was committed to building advanced lithography machines. This is somewhat surprising, as earlier this year SMEE had said it would release a 28 nm lithography tool by the end of the year.
The scanner is reportedly called the SSA/800-10W and represents a major advance for the company, as its existing SSA600 series machines are capable of 90nm, 110nm, and 280nm process technologies.
TSMC has been producing chips using its 28nm process technology since 2011, while China-based SMIC adopted similar technology in 2015. However, both SMIC and TSMC have used ASML lithography tools to manufacture appropriate chips.
The latest export rules established by the US government prevent Chinese chip manufacturers from acquiring the equipment and knowledge necessary to produce advanced non-planar transistor logic chips smaller than 14nm/16nm, 3D NAND chips with over 127 active layers, and DRAM ICs with a half pitch below 18nm.
Additional restrictions from the Netherlands, Japan, and Taiwan, which came into effect earlier this year, further isolated Chinese companies from sophisticated tools. These restrictions make it difficult for them to manufacture chips using their latest manufacturing nodes, particularly the 14nm/12nm and second-generation 7nm processes from SMIC, and the 128 and 232-layer 3D NAND chips from YMTC. However, the US Department of Commerce included SMEE on its entity list last year, trying to prevent China from advancing its semiconductor industry with its own tools.