China’s Hua Hong Group has developed 7nm manufacturing technology through its foundry unit Huali Microelectronics, according to Reuters sources. If commercialized as planned, Huali would become China’s second domestic contract chipmaker after SMIC able to produce chips at that node. The work is reportedly underway at Hua Hong Fab 6 in Shanghai, currently the group’s most advanced fab.

Reuters reports that Huawei Technologies has collaborated with Hua Hong on the 7nm effort, while domestic tool vendors, including Huawei-backed Sicarrier, have supported development and equipment testing. It’s unclear which Western equipment manufacturers have supplied tools. ASML doesn’t comment on specific shipments.
Details about the chip-making process itself are scarce as well. Yield, in particular, is a big question mark. Although pioneer SMIC is capable of manufacturing 7nm chips, the foundry’s output is known to be relatively low, partly because of yield issues.
