China’s Semiconductor Sector: Advances, Proposals, and Industry Dynamics

This article outlines the latest developments in the semiconductor sector, focusing on China’s EUV lithography advancements, proposals for anonymous technology purchases, and shifts within major companies like Intel and Kioxia. Key points include Huawei’s efforts in EUV, legislative initiatives to bypass US sanctions, and the rising domestic manufacturing capabilities in China amidst geopolitical tensions.

This article provides a summary of significant developments in the semiconductor industry, particularly focusing on China’s advances in extreme ultraviolet (EUV) lithography and proposals made by Chinese lawmakers to navigate U.S. export controls. China is reportedly achieving progress with its domestic EUV system based on laser-induced discharge plasma technology, with trials expected by Q3 2025 and mass production anticipated in 2026. Huawei and SMIC are spearheading these initiatives, which could lead China to become the second nation with EUV capabilities after the Netherlands.

A proposed policy by a Chinese lawmaker seeks to facilitate anonymous transactions for semiconductor technologies, allowing firms under U.S. sanctions to acquire foreign technology discreetly. Engineer Wen-Hui Guan presented the idea at the National People’s Congress, emphasizing that the transparency in public tenders can expose suppliers to sanctions. While loopholes exist for technology acquisition, the proposal is still under governmental review amid rising U.S.-China tech tensions which critically affect China’s semiconductor ambitions.

Naura Technology Group continues to expand its semiconductor equipment portfolio, focusing on bridging the gap in lithography machines within China’s supply chain. Despite advancements in coating and related technologies, China is still dependent on foreign lithography technology. Investments in companies like Kingsemi highlight efforts to enhance domestic production capabilities,

Discussions continue around Intel’s leadership change, as newly appointed CEO Lip-Bu Tan may consider merging Intel’s foundry operations with GlobalFoundries. This strategy aims to strengthen domestic competition against TSMC in the global semiconductor market. The geopolitical landscape, particularly U.S. scrutiny surrounding Tan’s connections, further complicates Intel’s future moves in this space.

Kioxia projects a 10-15% increase in NAND shipments for 2025, despite current weak demand in certain sectors, driven by the growth expected in AI server capacities. The company is focusing on high-density storage solutions and progressive developments in its NAND roadmap.

Intel’s Panther Lake processor was publicly revealed at Embedded World 2025, showcasing advanced AI computing capabilities with substantial power and hybrid architecture. It signals strong progress in production, crucial for Intel’s strategy in maintaining competitiveness, amidst rivals like TSMC. Lastly, Naura ranked sixth globally among semiconductor equipment providers reflecting China’s efforts towards self-sufficiency despite persisting U.S.-China tensions.

In summary, China’s advancements in semiconductor technology, fueled by innovations in EUV lithography and strategic sourcing proposals, underline its determination to enhance self-sufficiency in the face of U.S. export restrictions. Furthermore, the evolving dynamics within major companies like Intel and Kioxia indicate a competitive landscape that is rapidly changing, shaped by geopolitical factors and technology demands. As these developments unfold, China’s position within the semiconductor industry will be pivotal for its economic advancement in the coming years.

Original Source: www.digitimes.com