Maire, principal at Semiconductor Advisors (New York), said China is far behind in its domestic semiconductor production equipment business.

“If China has 14nm production capacity, but buys all of its equipment from abroad, it doesn’t really help them that much.

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“This 13 percent (from domestic suppliers) drives the Chinese government crazy.

Yes, they will close that gap a little bit, but not to the extent that they think,” Mc Clean told The Con Fab audience in mid-June.

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Bill Mc Clean, president of IC Insights (Scottsdale, AZ), said China is fast becoming a center for 3D NAND production, as several companies expand production in China.

Intel is converting its Dalian, China fab partly to 3D NAND, and Toshiba might very well make a deal in China to build a 3D NAND fab there, he said. government limits exports of leading-edge technologies on national security concerns, 3D NAND relies more on overlay and etch techniques at relaxed (40nm) design rules, he noted.

“China could be the 3D NAND capital of the world,” Mc Clean said at The Con Fab conference in Las Vegas. “Since the 3D NAND makers are not pushing feature sizes, it doesn’t raise red flags like if Chinese companies wanted Fin FET technology. However, Mc Clean said the 3D NAND market is not immune to the oversupply issues that now face the DRAM makers. China’s domestic IC market is slightly more than 0 billion, Mc Clean said, while chip production in China was about billion last year, representing just under 5 percent of worldwide production (Figure 1).