China’s 5nm Progress: SMIC Slowly Closes the Gap
SMIC has successfully produced 7nm chips (known as the N+2 process) since late 2023, powering key products like Huawei’s Kirin 9000S and other domestic SoCs. Now, new reports suggest that its 5nm-class node (N+3) is approaching yield rates of 60–70%, a surprising achievement considering the process relies heavily on DUV multi-patterning instead of EUV.
“SMIC’s 5nm yields are reportedly hitting commercial viability, though still behind TSMC’s N5 in efficiency and power,” said industry analysts at TrendForce.
While the process remains less dense and less power-efficient than TSMC's 5nm, it marks an important milestone for China’s goal of semiconductor self-reliance. The yield progress shows that even without the latest lithography tools, Chinese engineers can engineer creative workarounds to achieve near-flagship capabilities.
Meanwhile in Taiwan: TSMC’s 2nm is Almost Ready
On the other end of the performance spectrum, Taiwan Semiconductor Manufacturing Company (TSMC) is setting the stage for mass production of its 2nm node (N2) by the second half of 2025, with products expected to enter commercial markets in early 2026.
Key developments:
Trial production yields exceeded 60% in early 2025.
Yields for SRAM chips using the 2nm node have now passed 90%, according to insider sources.
Uses GAA (Gate-All-Around) nanosheet transistors instead of FinFET — delivering up to 30% lower power or 15% performance boost over the 3nm N3E process.
First clients include Apple, MediaTek, NVIDIA, AMD, and Qualcomm.
TSMC's 2nm fabs in Hsinchu, Kaohsiung, and Taichung are being equipped to handle over 50,000 wafers per month, rapidly scaling in late 2025. The company’s N2 roadmap is on track and even includes a more advanced N2P variant arriving by late 2026.
East vs West: Race to the Next Frontier
While TSMC maintains a clear lead in advanced process nodes, China’s progress at SMIC is notable especially under the weight of U.S. export controls. If SMIC can achieve stable 5nm yields by the end of 2025, China could close the performance gap for mainstream devices, even if not yet ready for high-end AI and HPC chips.
On the flip side, TSMC’s race toward 1nm (N1) is already underway, with mass production projected between 2028–2030. Meanwhile, Samsung and Intel are racing with their own 1.4nm and 1.8nm-class technologies, ensuring no region stays complacent.
Final Thoughts
SMIC’s evolving 5nm capabilities and TSMC’s near-flawless execution of 2nm demonstrate two sides of semiconductor strategy:
Resilience and improvisation in China,
Precision and leading-edge innovation in Taiwan.
For consumers and industry watchers alike, 2025–2026 will be a pivotal period for chipmaking history.
