China’s Hua Hong Advances 7nm Chips Amid Tech Self-Reliance Push

China’s second-largest chipmaker, Hua Hong Group, is reportedly preparing to produce advanced 7-nanometre (7nm) chips, marking a significant step in the country’s long-term push for semiconductor self-reliance. Sources familiar with the development say the company’s contract manufacturing unit, Huali Microelectronics, has developed the capability to manufacture chips using the advanced 7nm process at its Shanghai fabrication facility.

If commercial production proceeds as planned, Hua Hong will become the second Chinese foundry capable of producing chips at this node after Semiconductor Manufacturing International Corporation (SMIC). The development reflects Beijing’s broader strategy to strengthen domestic semiconductor manufacturing as geopolitical tensions and export restrictions reshape global technology supply chains.

China’s semiconductor push has intensified in response to U.S. export controls on advanced chip technologies and manufacturing tools. However, Washington has also selectively relaxed certain restrictions in recent months. This has allowed companies such as Nvidia to continue supplying specially designed artificial intelligence chips to the Chinese market, though these are typically less powerful versions tailored to comply with export rules.

Despite continued access to some foreign chips, Chinese authorities have encouraged local firms to prioritise domestic alternatives. Companies including Huawei Technologies have reportedly collaborated with domestic foundries to develop advanced chipmaking capabilities, accelerating innovation within China’s semiconductor ecosystem.

Test production of Hua Hong’s 7nm process reportedly began last year at the company’s Fab 6 facility, with support from local equipment suppliers. Initial production capacity could reach a few thousand wafers per month by the end of the year, with further expansion planned.

The move highlights China’s growing determination to build an independent semiconductor supply chain as the global race for advanced chips, especially those powering artificial intelligence, continues to intensify.

Source: The Economic Times