SMIC Matches TSMC Chip Density Without EUV Machines, Redefining Foundry Race 2026

SMIC has matched TSMC in chip density without the EUV machines that the industry assumed were necessary, according to recent reports. The Chinese foundry achieved this feat using deep ultraviolet (DUV) lithography and multiple patterning, a technique that pushes older equipment to its limits.

This development marks a significant milestone for China's semiconductor ambitions and raises questions about the effectiveness of export controls aimed at slowing the country's technological progress.

SMIC's Rise in the Global Foundry Market

SMIC (Semiconductor Manufacturing International Corp) is China's largest semiconductor manufacturer, with a global market share slightly above 5%. This places it close to Samsung's 7.2% and ahead of Intel, GlobalFoundries, and UMC, making it the third-largest foundry globally.

The company gained international attention in September 2023 when it confirmed it had produced a 7nm chip, the Kirin 9000S SoC for Huawei, using ASML's deep ultraviolet (DUV) lithography equipment. This achievement surprised many industry observers who believed advanced chip production required extreme ultraviolet (EUV) lithography.

The EUV Challenge and US Sanctions

SMIC's breakthrough put it in the crosshairs of the US government. The US administration did not expect a Chinese manufacturer to be capable of producing advanced chips without access to ASML's EUV machines.

US and Dutch sanctions prevent ASML from delivering its most sophisticated equipment to Chinese clients. As a result, SMIC has been forced to rely on ingenuity to produce its semiconductors. The company's 7nm chips are the result of multiple patterning, a technique well-known to chipmakers.

What is Multiple Patterning?

Multiple patterning involves transferring the pattern onto the wafer in several passes to increase resolution. This allows manufacturers to achieve finer features than the lithography equipment's wavelength would normally permit. While effective, multiple patterning is more complex and costly than using EUV, which can pattern features in a single pass.

SMIC's ability to match TSMC in density using multiple patterning demonstrates remarkable engineering prowess. It also highlights the potential for innovation under constraints.

Comparing SMIC and TSMC: A Table

While SMIC's market share remains far below TSMC's, its technological achievement narrows the gap in advanced nodes. However, SMIC's reliance on multiple patterning may limit its ability to scale to smaller nodes like 5nm or 3nm without EUV.

Implications for the Semiconductor Industry

SMIC's progress has significant implications for the global semiconductor industry and US-China tech competition. It suggests that export controls may be less effective than intended, as Chinese firms find workarounds.

It also puts pressure on TSMC and other foundries to maintain their technological lead. The incident may accelerate efforts to develop new lithography technologies or alternative methods. The longer history behind the story is traced in TSMC's Biggest Threat Isn't Competition: It's Water Scarcity. More on the surrounding debate is collected in TSMC President: "We Are Not Afraid" of Chinese Chipmakers.

• SMIC's achievement demonstrates the potential of multiple patterning to extend DUV lithography.
• US sanctions have not stopped SMIC from advancing, but they have increased costs and complexity.
• The global foundry landscape could shift as SMIC gains capability, though TSMC remains dominant.
• Export controls may need reevaluation to address loopholes like multiple patterning.
• China's semiconductor self-sufficiency drive is yielding results, albeit with challenges.

What to Watch Next

Industry observers will be watching whether SMIC can sustain its advanced node production and improve yields. The company's ability to scale to 5nm without EUV is uncertain, but its 7nm achievement is a warning shot. The background to this story is set out in Rapidus Aims to Lure TSMC Customers to Japan's Chip Industry. A related thread runs through TSMC's Chip Factory Expansion Hits a Labor Shortage Wall. Earlier coverage in TSMC's New Chip Campus: Why Neither Option Is in Europe shows how the argument developed.

Additionally, the US may tighten sanctions further or pressure allies to close gaps. The Netherlands and Japan, key suppliers of semiconductor equipment, could face renewed calls to restrict exports. A closer look at the same subject appears in TSMC's $265 Billion US Bet: 2nm Chip Plants in Arizona. Anyone following the wider picture can start with Intel vs TSMC: Diverging Paths in High-NA Lithography. The same theme surfaces in Apple Finds Relief in 2nm Chip Yield as TSMC Hits 90%, which takes a different angle.

For now, SMIC has proven that necessity is the mother of invention. Its success with multiple patterning is a testament to human ingenuity and a reminder that technological barriers are not always insurmountable. Context on how this played out before sits in TSMC Races Against the Clock to Meet Big Tech's 3nm Chip Demand. A companion piece, Sony and TSMC Joint Venture to Make Advanced Mobile Sensors, approaches the same subject from another angle.

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