China has recently bridged a gap in chip manufacturing that often goes unnoticed. The size of the wafer indicates how much progress is still needed.

      Hwatsing Technology, China's top manufacturer of chemical mechanical polishing (CMP) equipment, announced on Thursday a metrology system designed for six-inch wafers that can be directly integrated into the polishing workflow. The company states that this is the first six-inch metrology system in China to be paired with CMP equipment.

      The key aspect is the integration. Instead of measuring the wafers separately after processing, this system captures data before and after polishing and relays live information to the control system, as reported by the South China Morning Post.

      Understanding the Importance of Polishing

      Chemical mechanical polishing is essential for flattening and smoothing the silicon wafer between processing layers. Modern chips consist of numerous layers, and each must be perfectly planar within nanometres; otherwise, printing the next layer can be compromised. While this process may seem mundane, it significantly affects yield. Enhancing the measurement loop is expected to improve wafer uniformity and reduce waste, which is especially crucial for a country with older lithography technology that relies heavily on every yield point.

      Details in the Announcement

      A six-inch wafer measures 150mm. Leading-edge logic is currently produced on 300mm wafers, and the sub-10nm nodes that are subject to export controls are not manufactured elsewhere. The 150mm size pertains to older nodes and compound semiconductors, which are also facing obsolescence. Silicon carbide devices are already shifting from 150mm to 200mm for mass production, and gallium nitride devices are progressing from 200mm to 300mm.

      Despite these changes, the tool remains significant; it suggests a step in progress rather than a leap to the top of the ladder.

      Hwatsing's Achievements

      The company's performance serves as a stronger indicator of success. China's share of the global CMP equipment market increased from about 1.5% in 2022 to nearly 11% in 2023, largely credited to Hwatsing, according to Georgetown's Center for Security and Emerging Technology. The progression is further supported by their volume; Hwatsing shipped its 1,000th CMP system in April and aims to focus on advanced chip manufacturing next.

      They are making substantial investments, looking to raise up to 4 billion yuan (approximately $552 million) through a private placement for capacity expansion, wafer reclamation services, and high-end tool development. Additionally, a separate investment of $237 million for plant development is in motion.

      Currently, Applied Materials dominates the CMP market, with Ebara holding about 27% globally. An 11% share is significant, but not a commanding position.

      The Lithography Challenge Remains

      Polishing tools do not identify the main constraint. ASML is the sole manufacturer of EUV lithography machines, which China cannot acquire under US-led export restrictions. Major developments are occurring in this area, as China's own DUV tool has been named Shanghai Aishengna, which would be considerably more impactful than an upgrade to metrology, although independent analysts have noted this progress comes with significant cautions.

      Underlying Strategy

      Beijing's strategy is to bridge as many gaps as possible while the most challenging one remains locked. Reports indicate that China's self-sufficiency in semiconductor equipment has risen to approximately 35%, up from around 25% two years ago. Washington is contemplating further limits on chip equipment sales, with Beijing arguing that cutting the supply chain ultimately harms all involved. Each new round of restrictions has accelerated the localization it aimed to hinder.

      Future Success Indicators

      China has already demonstrated its ability to create a world-scale chip company in areas where the tools are available. Memory manufacturer CXMT saw a 466% rise in its stock on its Shanghai debut, making it the most valuable listed DRAM company in the country.

      Demand is increasing; for instance, Apple has started testing CXMT memory chips, representing a significant endorsement for a Chinese chipmaker. However, CXMT continues to rely on foreign equipment that is not always accessible. This reliance is what tools like Hwatsing’s endeavor to mitigate, tackling the issue gradually through each process step, which, while slower than a breakthrough, is harder to sanction.