SMIC’s Bold Move? Navigating the Nano-Challenge

Specialists from TechInsights examined Huawei’s latest SoC, the Kirin 9030, to understand precisely the technology process it was manufactured with, given that neither Huawei nor SMIC have shared detailed information. It’s known that this process is called N+3 and is allegedly comparable to competitors’ 5-nanometer solutions. While the technology is indeed N+3, realistically, it can’t be equated with TSMC’s 5nm standards. It is more of an intermediary between 7nm and 5nm norms. Essentially, SMIC acquired their new process by improving the previous one, which was precisely 7nm (7 nanometers is 0.007 micrometers).

Nonetheless, this still indicates that SMIC has managed to make progress despite only having older ASML DUV machines at its disposal. In contrast, TSMC transitioned to EUV for producing chips adhering to 5nm norms. The Kirin 9030 is produced using SMIC’s N+3 process, which is an improved version of the previous 7nm (N+2) process. However, in absolute terms, N+3 remains significantly less scaled than the industrial 5nm processes from TSMC and Samsung. Although SMIC has introduced notable innovations based on DUV and DTCO, it is expected that this process will face significant challenges with yielding viable products, particularly due to the aggressive reduction of metal layer pitches when using multi-layer DUV pattern formation.

Thus, as predicted by specialists in the past, even if SMIC manages to go beyond 7nm, the consequences will be increased costs and an insufficient yield of viable crystals. For this reason, chips for Huawei are far from cheap. Whether SMIC can make further advancements remains to be seen. But competitors are already poised to produce chips using 2nm norms, with noteworthy advancements that are further diminishing the gap.

As of late 2025, TSMC and Samsung are moving forward with plans for mass production of 2nm technology, highlighting a forward-looking edge. Meanwhile, SMIC is exploring strategies to enhance its technological capabilities, possibly through partnerships or local innovations, although it faces challenges due to sanctions and limited access to cutting-edge lithography technologies, making a bold move in the competitive nano-manufacturing race.