Seoul [South Korea], May 12 (ANI): China is accelerating efforts to extend home manufacturing of silicon wafers as synthetic intelligence-driven chip demand continues to surge globally, in line with a news report by The Korea Herald.
The report acknowledged that China goals to supply greater than 70 per cent of its superior silicon wafers domestically by 2026 as a part of a broader push to strengthen its semiconductor provide chain and cut back dependence on international suppliers.
While specialists consider China’s rise is unlikely to instantly disrupt the worldwide semiconductor trade, they famous that the nation is steadily reinforcing one of the crucial essential layers of chip manufacturing amid rising demand for AI-related infrastructure.
‘The world’s prime 5 wafer suppliers are unlikely to face a severe menace from China’s rise, however they are going to nonetheless must hold Chinese rivals in test by sustaining their technological lead,’ stated Park Jae-geun, distinguished professor at Hanyang University’s Department of Semiconductor Engineering.
The world silicon wafer market is at the moment dominated by a small group of main corporations, together with Shin-Etsu Chemical and Sumco from Japan, GlobalWafers from Taiwan, Siltronic from Germany and SK Siltron from South Korea.
According to the report, Beijing has inspired native chipmakers to undertake domestically produced 12-inch wafers as AI infrastructure investments proceed to spice up semiconductor demand. Nikkei Asia reported that China has successfully made using regionally produced wafers an ‘unstated mandate,’ leaving solely round 30 per cent of the home market out there to abroad suppliers.
Chinese wafer producer Eswin Material Technology stated its mixed manufacturing capability will attain 1.2 million 12-inch wafers per 30 days by 2026, sufficient to satisfy round 40 per cent of China’s home demand. The firm added that the growth might assist it safe a world market share exceeding 10 per cent.
Eswin additionally stated it already provides wafers to main world corporations together with Micron Technology, TSMC, GlobalFoundries and United Microelectronics Corporation.
The report famous that Samsung Electronics and SK hynix, each of which function manufacturing amenities in China, are additionally evaluating Eswin’s merchandise.
However, specialists stated main chipmakers are nonetheless anticipated to depend on established suppliers for superior business manufacturing because of the know-how hole.
‘Top corporations akin to TSMC are unlikely to make use of Chinese wafers for superior mass manufacturing and can proceed sourcing prime wafers from established suppliers. That exhibits the know-how hole stays substantial,’ Park stated.
Industry officers cited within the report stated Korean chipmakers might at the moment be utilizing Chinese wafers primarily for testing and analysis reasonably than large-scale manufacturing.
The report additionally highlighted rising considerations over doable wafer shortages as AI-driven semiconductor demand rises globally.
Samsung sources wafers from suppliers together with Siltronic and SK Siltron, whereas SK hynix procures them from producers with manufacturing amenities throughout South Korea, Japan, Germany and the US.
SK Group Chairman Chey Tae-won stated shortages in high-bandwidth reminiscence are largely linked to wafer provide constraints.
‘It takes at the least 4 to 5 years to safe further wafer capability,’ he stated, warning that industrywide HBM shortages might proceed by means of 2030.
According to trade affiliation SEMI, world silicon wafer shipments reached 3.28 billion sq. inches within the first quarter, up 13.1 per cent from a 12 months earlier.
SEMI initiatives wafer shipments will rise additional to a file 15.49 billion sq. inches by 2028, pushed by rising AI information middle development and rising edge computing demand.
The report added that China’s localisation push can also be geared toward getting ready for potential future US commerce restrictions by strengthening home provide chain resilience. (ANI)