China breaks technological barrier and could surpass the US in the semiconductor war

A Wuhan-based laboratory announced a ‘milestone’ that could help China with constraints on traditional chip design technology

A state-funded semiconductor laboratory in China announced that it has achieved important progress in the field of silicon photonicsa breakthrough that could help the country overcome technical challenges in chip design and become more self-sufficient, despite US-imposed sanctions.

O JFS Laboratorylocated in Wuhan, capital of Hubei province and an important national photonics research center, managed to successfully integrate a laser light source into a silicon chip – something unprecedented in China, as reported in a post from the laboratory itself last week . According to the state newspaper People’s Dailythis achievement closes one of the few gaps that China still had in its optoelectronic technology.

A silicon photonics uses optical signals, rather than electrical, to transmit data. This technology aims to resolve limitations imposed by traditional systems, as electrical transmission between chips is approaching its physical limit, according to information from the laboratory.

Founded in 2021 with a contribution from 8.2 billion yuan (approximately US$1.2 billion) from the government, JFS is one of the country’s main institutions dedicated to the development of new technologies.

Several leading companies in the global semiconductor industry have invested in advancing silicon photonics, a technology seen as the future for creating more efficient chips capable of processing large amounts of data, graphics and also supporting the growing demand for artificial intelligence (AI). However, the transition from scientific discoveries to commercial products remains a major challenge.

A Taiwan Semiconductor Manufacturing Company (TSMC)the world’s largest contract chip manufacturer, is also involved in research into this technology. Douglas Yu Chen-huavice president of TSMC, commented last year that a “good silicon photonic integration system” could solve crucial problems of energy efficiency and computing power in the age of AI. He predicted that this technology could trigger a true “paradigm shift” in the industry.

Additionally, prominent chip design companies such as Nvidia e Intelfrom the USA, and the Chinese Huawei Technologiesare all keeping an eye on advances in silicon photonics. According to estimates from the SEMIan international semiconductor industry association, the global silicon photonic chip market could reach US$7.86 billion by 2030, compared to US$1.26 billion registered in 2022.

Silicon photonics represents a strategic opportunity for China, especially given restrictions imposed by US export controls on chip manufacturing technologies. The production of these chips in the country can be made possible with raw materials and equipment already consolidatedwithout depending on the sophisticated extreme ultraviolet (EUV) lithography machines used in the production of traditional electrical chips. These machines, essential for manufacturing advanced chips, are seen as the Chinese semiconductor industry’s biggest obstacle as the ASMLa Dutch company that practically has a monopoly on these machines, suspended its exports to China in 2019.

Silicon photonics, therefore, could become a new field of technological dispute between USA and Chinaas analyzed in a report from the Center for Strategic and International Studies (CSIS)an American think tank, published in January.

“While U.S.-led export controls are likely hurting China’s capabilities in traditional chip manufacturing… [eles] They may also inadvertently encourage China to devote more resources to emerging technologies that will play an important role in next-generation semiconductors,” wrote Matthew Reynolds, a former fellow in the CSIS economics program, in the report.

With information from South China Morning Post*