China's Hua Hong Group has achieved a major milestone in Beijing's efforts to boost tech self-sufficiency by developing advanced chip manufacturing technology for AI chips.
The company's contract chipmaking business, Huali Microelectronics, is readying a 7-nanometre chipmaking process at its Shanghai plant, making it the second Chinese chipmaker with such advanced technology.
Hua Hong is collaborating with Huawei Technologies Ltd. on the 7 nm AI chip, and its development comes after Washington eased some tech export controls, allowing Nvidia Corp. to sell its AI chips to China.
Despite this, Beijing has encouraged domestic firms to purchase homegrown alternatives, as it seeks to wean itself off foreign suppliers.