In my recent article, I delve into the topic of chiplets – a chip manufacturing method that splits chips into multiple modules. This technique not only cuts down on design costs, but also enhances computational performance. It has the potential to aid China in the creation of more powerful chips. This is especially relevant given the current US government restrictions preventing Chinese firms from importing particular vital technologies.
Chiplets are recognized as a cost-effective option for enhancing chip performance globally, outside of China. This approach suggests that instead of incessantly striving to pack more transistors into a solo chip, the chip’s functions can be divided into several smaller gadgets. Each gadget might be easier to create than a single, potent chip. Notably, corporations like Apple and Intel have already produced commercial items using this technique.
However, the significance of this technology increases within China, due largely to US sanctions that restrict Chinese firms from acquiring high-tier chips or the technology to create them. Thus, Chinese companies must strategize how to make the most of the technologies they do possess. This is where chiplets come into play – by producing each chiplet to the most advanced extent they can and putting them together into a system, they can potentially replicate the power of state-of-the-art chips.
Chiplet creation is not a new technology. Huawei, a Chinese tech behemoth with a chip design subsidiary named HiSilicon, began experimenting with its first chiplet design in 2014. However, after the US imposed sanctions in 2019, cutting ties with foreign factories, the significance of the technology rose. In 2022, then chairman of Huawei, Guo Ping, stated the company was hopeful that by connecting and stacking up less sophisticated chip modules, their products could remain competitive.
Nowadays, substantial investments are being made in the chiplet space. Recognizing the importance of chiplets, the Chinese government and investors are directing funds into academic initiatives and startups alike.
Wuxi, a Chinese city situated halfway between Shanghai and Nanjing, has particularly demonstrated a firm commitment to chiplets. Despite being a moderately-sized city, Wuxi boasts a robust manufacturing industry. This includes a history in the semiconductor sector, with a state-own wafer factory established there in the 1960s. A striking 75% of the state budget was allocated to the factory in Wuxi when the government resolved to fund the semiconductor industry in 1989.
