SiCarrier’s innovative use of DUV lithography for 5nm chips demonstrates China’s progress in semiconductor self-sufficiency despite US export controls, potentially reshaping global supply chains.
Chinese semiconductor equipment maker SiCarrier has achieved a technological milestone by developing 5nm-capable fabrication tools using deep ultraviolet (DUV) lithography, bypassing the need for restricted extreme ultraviolet (EUV) technology. This breakthrough, reported by industry analysts in June 2024, comes despite tightening US export controls and represents a significant step in China’s push for chipmaking independence.
DUV breakthrough defies export restrictions
SiCarrier’s achievement in adapting DUV lithography for 5nm node production marks a significant departure from industry norms, where EUV technology has become standard for advanced nodes. According to industry reports, the Chinese firm has achieved yields between 50-60% on test runs – notably lower than TSMC’s 80% yields with EUV, but demonstrating remarkable progress given the technological constraints.
“What SiCarrier has accomplished shows that while EUV is the preferred path, it’s not the only path to advanced nodes,” commented semiconductor analyst Mark Li from Sanford C. Bernstein. “This could give China a viable alternative for certain applications where cutting-edge performance isn’t critical.”
The yield challenge and industrial applications
While SiCarrier’s yields currently trail industry leaders, experts note that 50-60% may be sufficient for many industrial and automotive applications. The China Semiconductor Industry Association recently highlighted that over 60% of domestic chip demand comes from these sectors rather than consumer electronics.
“For power management chips, microcontrollers, and automotive semiconductors, this DUV-based 5nm technology could be perfectly adequate,” explained Dr. Wei Han, a professor at Peking University’s School of Integrated Circuits. “It won’t compete with the latest smartphone processors, but it addresses critical needs in China’s manufacturing ecosystem.”
Global implications and supply chain bifurcation
The development raises questions about potential bifurcation in global semiconductor supply chains. With China progressing on DUV-based advanced nodes and the rest of the industry moving toward next-generation EUV, the technological divergence could create parallel ecosystems with different standards and specifications.
ASML CEO Peter Wennink acknowledged this possibility in the company’s Q2 earnings call, stating: “While we remain confident in EUV’s superiority for the most advanced nodes, we recognize that different markets may develop different technological solutions based on their specific circumstances and requirements.”
