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Because old equipment is used
Already this year, the Chinese company SMIC may begin producing 5-nanometer products for Huawei. According to recent data, such products will be one and a half times more expensive than similar ones from TSMC.
It was previously reported that due to old equipment without EUV, such chips will be expensive. Now it has become known that we are talking about a 50% markup relative to TSMC’s 5-nanometer products. However, according to expert calculations, with the current 7-nanometer process technology at SMIC the situation is approximately the same.
Recall that Huawei is now going to actively promote its AI chips in China, and is sacrificing the production of SoC Kirin for this.