Podcast Episode
The group's contract manufacturing subsidiary, Huali Microelectronics, is preparing to bring a seven nanometre production process online at its Fab 6 plant in Shanghai. This would make Hua Hong only the second Chinese chipmaker capable of producing chips at this advanced level, following SMIC.
Huali is targeting an initial production capacity of several thousand wafers per month by the end of twenty twenty six, with plans to scale further afterward.
The push continues even as Washington has eased some export controls, reflecting Beijing's determination to build a fully self-reliant semiconductor supply chain regardless of the geopolitical climate.
China's Second Chipmaker Breaks Into 7nm Territory With Huawei's Help
March 16, 2026
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China's Hua Hong Group has developed seven nanometre chip manufacturing capabilities at its Shanghai plant, making it only the second Chinese chipmaker to reach this milestone after SMIC. The breakthrough, achieved with Huawei's collaboration, signals a major step in Beijing's push for semiconductor self-sufficiency.
A New Player in Advanced Chipmaking
China's Hua Hong Group has quietly developed the technology needed to manufacture seven nanometre chips for artificial intelligence applications, marking a significant milestone in the country's drive to break free from Western semiconductor dependency.The group's contract manufacturing subsidiary, Huali Microelectronics, is preparing to bring a seven nanometre production process online at its Fab 6 plant in Shanghai. This would make Hua Hong only the second Chinese chipmaker capable of producing chips at this advanced level, following SMIC.
Huawei's Helping Hand
The development did not happen in isolation. Huawei Technologies has been collaborating with Hua Hong on the seven nanometre technology, with research and development supported by domestic equipment suppliers including Huawei-backed SiCarrier. The company tested its equipment at a facility in Shenzhen before deployment.Huali is targeting an initial production capacity of several thousand wafers per month by the end of twenty twenty six, with plans to scale further afterward.
First Customers Already Lining Up
Chinese GPU designer Biren Technology is among the first customers, using Huali's seven nanometre line for tape-out, the critical process of turning a chip design into a physical prototype. Biren lost access to TSMC's manufacturing services after being placed on a United States trade blacklist in twenty twenty three.The Bigger Picture
China aims to increase its output of advanced chips at seven and five nanometre levels to one hundred thousand wafers within one to two years, up from fewer than twenty thousand currently. Hua Hong Semiconductor announced plans in December to acquire a controlling stake in Huali, raising seven point five six billion yuan to fund upgrades at the foundry.The push continues even as Washington has eased some export controls, reflecting Beijing's determination to build a fully self-reliant semiconductor supply chain regardless of the geopolitical climate.
Published March 16, 2026 at 12:11pm
