The list covers several sectors that the Shanghai authorities considered necessary to support at the state level. In total, it consists of 166 projects, of which seven projects are related to semiconductor production. In particular, SMIC, like other companies on the list, will receive government support for the construction of chip production lines in Shanghai.

According to reports, SMIC plans to build a new SN1 factory in the city to manufacture chips on 12 “(300 mm) wafers. On this production line, the company will produce up to 35,000 wafers per month in advanced manufacturing processes below 14 nm. It is planned to spend $ 12 billion on the enterprise. SMIC is moving forward in the development of 7-nm chip production. Its plans are still hampered by the inability to purchase equipment for printing in the deep ultraviolet range (EUV) due to US sanctions. This lithography uses shorter wavelengths of light and allows for more efficient downsizing of transistors.

The document also reveals that Huali Microelectronics, like SMIC, also plans to build a 12-inch semiconductor production line. Huali Huahong Factory No. 5 became the first fully automated chip production line in China: it now produces crystals in compliance with 55-, 40- and 28-nm standards, and the enterprise is capable of printing 35,000 plates per month. In Shanghai, the company will build its second plant to produce 40,000 more wafers per month at 28nm and 14nm standards.

The list includes other semiconductor manufacturing companies: Jita Semiconductor, Jingle Semiconductor, Geke Semiconductor, Dingtai Semiconductor, Xinsheng Semiconductor, Shanghai Tianyue, and Shanghai Lingang. Of all the companies mentioned, the most ambitious project is going to be implemented by Xinsheng. The company, headquartered in Shenzhen, aims to increase silicon wafers’ production to 1 million units per month in the future. It is now capable of producing 150,000 plates a month – at one time, it was the first Chinese company to master 12-inch plate lithography successfully. The expansion of production capacity to 300,000 wafers per month is planned to be completed by the end of the year.

In addition to chip production, related industries are also actively developing in China. The most important in them from the point of view of import substitution are the equipment manufacturers China Microelectronics, Xiamen Sheng Mei Shi Automation Equipment Co., and KST. However, they are still very far from mastering EUV lithography.