Russia and China Take Parallel Paths in Semiconductor Development

Russia and China Take Parallel Paths in Semiconductor Development Amid U.S. Sanctions

Russia and China, both under U.S.-led sanctions aimed at stifling their semiconductor industries, are striving to reduce their dependence on foreign lithography equipment. While collaboration between the two nations remains uncertain, their strategies reflect a shared determination to overcome technological isolation through substantial investment in domestic capabilities.

Russia’s $2.54 Billion Push for Domestic Chip Manufacturing

In October 2024, Russia’s Ministry of Industry and Trade launched an ambitious program to eliminate reliance on foreign chip-making equipment. The initiative includes a $2.54 billion investment by 2030 to develop homegrown photolithography machines. Although modest compared to global semiconductor budgets, this investment is significant within Russia’s economic framework, with an initial focus on manufacturing 28 nm chips.

First UV Lithography Machine: A Small Step Forward

Russia recently unveiled its first extreme ultraviolet (EUV) lithography machine, as announced by Vasily Shpak, Deputy Minister of Industry and Trade, during the Digital Industry of Russia Industrial conference in May. The fully Russian-made machine is capable of producing 350 nm circuits—far behind industry leaders like Taiwan’s TSMC and South Korea’s Samsung, which are manufacturing 3 nm chips using ASML’s EUV technology.

Despite this technological gap, Russia’s achievement signals the establishment of foundational EUV capabilities. The focus now shifts to incremental advancements aimed at producing more sophisticated chips.

An Ambitious Timeline for EUV Development

Russia’s roadmap is aggressive. By 2026, it plans to deliver a prototype EUV machine capable of fabricating 130 nm chips. By 2028, it targets machines that can produce 7 nm circuits. While these milestones appear optimistic, recent reports reveal intriguing details about the underlying technology.

Leveraging Unique Laser Technology for Competitive Advantage

According to a report by Russian outlet CNews, Russia’s EUV lithography machines will utilize laser technology operating at a wavelength of 11.2 nm, compared to the 13.5 nm lasers employed by Dutch competitor ASML. The laser, powered by xenon rather than tin, promises several advantages:

• Improved Resolution: The 11.2 nm wavelength offers a 20% improvement in resolution, potentially enabling finer circuit details.
• Cost Efficiency: Russia’s machines are projected to be more economical than ASML’s offerings, thanks to simplified design and material choices.

This technological pivot could provide Russia with a unique selling point. However, the use of a different wavelength introduces compatibility issues with the current global ecosystem for chip manufacturing. Developing an entirely new ecosystem could take significantly longer than the projected three years to produce 7 nm chips.

Challenges Ahead: Ecosystem Development and Global Standards

The reliance on proprietary technologies means Russian EUV machines will not integrate seamlessly with existing semiconductor production frameworks. Establishing a self-sufficient ecosystem, including materials, processes, and tools, will be a formidable task requiring substantial time and resources.

While Russia’s efforts showcase resilience and ingenuity, achieving parity with global semiconductor leaders will depend on sustained innovation and investment. The path ahead is daunting, but the ambition underscores a broader shift towards technological independence in the face of geopolitical challenges.