In what's being viewed as a pivotal moment in semiconductor development, Chinese tech giant Huawei is collaborating with the nation's largest foundry, SMIC, to operationalize 5nm processes by next year. Reports depict this effort as a "life or death" race—underscored by the challenges faced due to US-imposed restrictions on essential equipment like EUV lithography systems.

The plan outlines using deep ultraviolet (DUV) technology as a substitute for EUV equipment, despite expected lower yields and increased costs. A patent developed by SciCarrier—a partner with Huawei in the semiconductor equipment space—suggests potential pathways for overcoming these hurdles using local technology.

While SMIC's yield from the 5nm DUV process is expected to be around 30%, notably less than TSMC's 90%, there is hope that domestic demand and advancements in local technology might prompt a competitive shift. As this narrative unfolds, the semiconductor industry watches closely, anticipating potential ripple effects on global production dynamics.