Chinese chip start-up Yuanjiwei has inaugurated what it claims is the world’s first 8-inch production line dedicated to two-dimensional semiconductor fabrication, aiming to develop 5-nanometre equivalent chips by 2029 without relying on restricted EUV lithography technology.
- Yuanjiwei launches 8-inch 2D semiconductor pilot production line in Shanghai
- Ambitious roadmap to create 5nm equivalent chips by 2029 without EUV tools
- 2D semiconductors offer reduced power leakage and new scaling opportunities
What happened
Shanghai-based chip start-up Yuanjiwei has unveiled the world’s first 8-inch production line for two-dimensional (2D) semiconductors. This pilot line supports the entire manufacturing cycle from 2D material preparation to chip integration and enables tape-out, the final stage of chip design. The company intends to use this facility to advance efforts in developing chips at a scale equivalent to 5-nanometre silicon technology by 2029, without employing extreme ultraviolet (EUV) lithography machines, whose sales to China are restricted by US export controls.
The launch represents a significant transition for China's 2D semiconductor technology, moving from research and laboratory experimentation to engineering validation and industrial production. This step aligns with the broader national strategy to achieve self-sufficiency in critical semiconductor technologies amid rising geopolitical tensions and supply chain challenges.
Why it matters
As Moore’s Law slowing challenges the traditional silicon-based 3D chip scaling, 2D semiconductor materials have emerged as a compelling alternative due to their atomic-scale thickness and ultra-low leakage characteristics. These properties enable smaller transistors without the increased complexity seen in current silicon chips and promise significant reductions in power consumption and heat generation.
Yuanjiwei’s approach addresses critical barriers to advancing chip technology under US-imposed restrictions on indispensable EUV lithography equipment. The company’s roadmap to commercialize processes equivalent to advanced silicon nodes could position China as a leader in next-generation semiconductor innovation, with potential broad impacts on memory capacity and energy efficiency in electronic devices.
What to watch next
Yuanjiwei plans to achieve a manufacturing process comparable to a 90-nanometre silicon node by the end of 2026, progressing toward full 5-nanometre equivalent chip production by 2029 without EUV lithography. Observers should monitor the company’s ability to scale this technology from pilot production to commercial viability and how quickly it can overcome the intricate challenges involved in 2D semiconductor manufacturing.
Industry experts emphasize the need for extensive collaboration across the semiconductor supply chain—including materials development, equipment providers, chip design houses, manufacturing, and testing entities—to successfully commercialize 2D semiconductors. The progress of such partnerships and any government support initiatives will be critical indicators of China’s semiconductor independence trajectory.