"This prevents whatever advances they make in R&D from getting into mass production, and also limits them from learning more tricks of the trade," said Mark Li, who tracks China's chip sector at Bernstein Research.Just as in the aviation industry, chipmaking equipment manufacturers work closely with clients, offering long-term services including installation, calibration, maintenance and repair of machines that can cost over $100 million each.
The firm advanced enough to produce a machine that could print circuit patterns as tiny as 90 nanometers on silicon wafers - two decades behind ASML. It was hailed as a domestic breakthrough nonetheless and in 2018 won a local government award. "Even if we could have built the machines, we wouldn't have known how to service and maintain them," the engineer said.
"We knew what it takes to do that, but we were limited by the equipment's design capability. Our U.S. rival had already solved that," the staffer said.Some people in the industry have urged a complete rethink in the way China can catch up by focusing on what the next era of chipmaking could look like rather than compete with overseas peers in trying to make circuits on chips denser and denser.
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