China's Hua Hong Advances to 7nm Chip Production

China's Hua Hong Group is poised to enter the advanced semiconductor manufacturing arena with its development of a 7-nanometer (nm) chipmaking process. This breakthrough, achieved by its contract chipmaking arm Huali Microelectronics, represents a major stride in China's pursuit of technological independence. The new 7 nm process, currently being readied at a Shanghai facility, would make Hua Hong the second domestic producer capable of such advanced chip fabrication, following SMIC.

This advancement arrives amidst shifts in U.S. export controls, which have allowed some companies to sell advanced AI chips to China. However, Beijing continues to prioritize homegrown solutions. Sources indicate that Chinese tech giant Huawei Technologies has been collaborating with Hua Hong on this 7 nm technology. Huali aims for initial production capacity of a few thousand wafers per month by the end of 2026, with plans to scale up thereafter. Chinese GPU designer Biren is reportedly utilizing Huali's 7 nm line for early prototyping.