Chinese corporation Hua Hong Group intends to launch a 7-nanometer chip production at the factory in Shanghai, Reuters writes with reference to sources.

The company is the second largest contract semiconductor manufacturer in China. Successful implementation of the project will allow its subsidiary Huali Microelectronics to become the second national player capable of producing chips of this level - until now, only SMIC has been able to do so. This move is seen as a significant milestone in Beijing’s strategy to break its technological dependence on Western giants like Nvidia and TSMC.

The key partner in development was the tech giant Huawei, who works closely with Huali. The project relies entirely on internal resources, including equipment from local manufacturers - for example, SiCarrier startup, also supported by Huawei.

The production site will be Hua Hong Fab 6, where previously only 22 nm and 28 nm logic chips were produced. By the end of the year, Huali expects to reach a capacity of several thousand silicon plates each month.