Chinese Media Cut Reports on '3nm Chip Designed by Xiaomi'

Reports emerged on Sunday that Chinese tech company Xiaomi had designed the country’s first 3-nanometre chip for smartphones.

That would be a major achievement, if true. Indeed, it would be a stunning breakthrough, given experts have said China was unlikely to achieve such an advance for years.

The company was reportedly hailed by Tang Jianguo, a chief economist in Beijing’s hi-tech sector, who said Xiaomi successfully “taped out” China’s first 3nm mobile chip.

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But the news – aired by state broadcaster Beijing Radio and Television Station (BRTV) and multiple other outlets on Sunday (Oct 20) – is clouded in doubt. That’s because, the South China Morning Post noted on Monday that the report was quickly removed from Chinese media without clarification from BRTV.

The expression “tape-out” refers to the final stage of the design process before chips go into mass production, the Post said, but added that “Sunday’s report was immediately picked up by dozens of local media outlets. However, they were quickly removed from the Chinese internet.”

Xiaomi, which is yet to comment on the alleged breakthrough, operates an in-house semiconductor unit that has previously designed various chips, including the S1 mobile chip and C1 image sensor, using both self-designed and imported chips, it said.

Analysts likely sceptical

The advanced chip sector has been an area of intense international rivalry, with the Biden Administration imposing strong restrictions on exports of chipmaking technology to China in recent years.

That has led to Beijing pouring tens of billions of dollars into the sector, plus increasing scrutiny of China’s advances in chip technology, given US efforts to limit the country’s access to lithography machines used to make high-end computer chips, plus the most advanced chips made by allies such as Japan, Taiwan and South Korea.

Analysts may well be sceptical of this news, prior to a close US election, but also because Xiaomi is best known for its many different appliances, and lately, its EVs. It allegedly only began hiring staff to make chips a year ago.

Trendforce reported last month that “recent reports of breakthroughs in China’s chip manufacturing equipment have gained attention, with rumours suggesting that China’s domestically-made DUV [Deep Ultra-Violet] equipment can produce chips at 8nm and below.

“Some companies have also applied for EUV [Extreme Ultra-Violet] equipment patents. However, according to a report by the Central News Agency, experts believe these claims are questionable, emphasizing that production yield is the real key.”

A 3-nanometre chip would be close to the levels of the world’s top chipmakers, such as Taiwan’s TSMC and South Korea’s Samsung.

Last year, the development of a homegrown 7-nanometre chip by Huawei was hailed as a local triumph and caused considerable alarm in Washington, which has been anxious to limit the Chinese military’s access to advanced chips.

Unlike Huawei, which has faced strict US sanctions for about five years, Xiaomi has access to mobile chips from companies like Qualcomm, which has enjoyed significant revenue growth from Chinese smartphone manufacturers, as the SCMP noted.

Qualcomm’s dealings with Xiaomi and other clients in China may now come under increasing scrutiny.