UPDATE:

ZTE has clarified that while it will design the 5nm chips, it will still rely on its supply chain sources to produce and manufacture these chipsets.

 

Earlier today (17th June 2020), ZTE stated that it has achieved chip design and development capabilities. It already has the 7nm processors being mass produced, and being utilized in global 5G infrastructures, while it has also begun importing 5nm process technology as well.

ZTE

Keep in mind, these chips are not 5G SoC (system on chip) but rather a core part for 5G equipment and infrastructure. Currently, the number of companies capable of developing chips built on 5nm processes aren’t high in China. Huawei is another example of this case, with its rumored Kirin 1020 chip being built on a 5nm process as well.

The new 5nm chip technology being imported will also bring ZTE to the latest standards in the semiconductor field. This also implies that the company would no longer have to rely on US based companies or suppliers. Furthermore, it also marks a notable shift in the semiconductor market as China is stepping up in the industry.

ZTE logo

The breakthrough arrives by ZTE heavily investing in its research and development department in recent times, especially for its chip development. According to the company’s vice president, ZTE has spent over 12.1 billion Yuan (roughly 1.7 billion US Dollars). With the recent US sanctions cutting off chip supply from TSMC to Huawei, the Chinese smartphone vendor is looking for alternatives and heavily investing in local semiconductor firms as well. Thus, ZTE being a chip foundry may also be a reliable candidate in the near future.

 

(Via)