The companies are already preparing to release a 5nm processor. ZTE will win more than others

The technological process cannot be stopped. Especially when it promises not only fame and honor, but also good benefits. This also happens with mobile processors. While some companies buy and install inexpensive processors released a year or two ago into their budget models, top manufacturers are trying to come up with something new and constantly improve all the parameters of computing chips. At one time we all admired 7nm processors, now it's time to move to 5nm. These numbers are not just small, they are literally comparable to molecular sizes. What kind of processor is this, why is it needed and how much do companies invest in its development?

The companies are already preparing to release a 5nm processor.  ZTE will win more than others

The processor is the most important part of any smartphone.

ZTE is preparing a 5nm processor

Xu Ziyang, President of ZTE Corporation, has confirmed that the company will enter the 5nm chipset market in 2021. This announcement was the result of a general meeting of shareholders held at the company's headquarters in the Chinese city of Shenzhen.

The executive pointed to the fact that ZTE has already begun mass production of its 7nm chips, making 5nm the next logical step. However, the company did not complete the task on its own and worked with its partners to ensure that the chip production was joint. But according to him, ZTE is responsible for the external and internal design for 5nm processors.

How much does it cost to manufacture a processor for a phone

It is reported that ZTE has spent about $ 1.7 billion (12.1 billion yuan) for this purpose. These are investments that are purposefully invested in the development and refinement of the technology of new chips. It is worth noting that the indicated amount is very large and no one will invest it just like that without the prospect of making a profit. Other manufacturers will also invest even more. And most of all will be spent by those who are directly involved in the production of the chips themselves – for example, Qualcomm.

Of course, the cost of manufacturing chips will not be very high afterwards, but their final cost will include the very billions spent on development. This I mean that it is wrong to talk about the cost of a smartphone in terms of the cost of its components. This is usually done after the release of new devices, when they say that its “cost” of $ 250 at a price of $ 1,000, omitting the point that everything still needs to be developed and sold.

Who makes 5nm processors

Returning to ZTE's 5nm chips, it's worth noting that the company faces stiff competition in its small world. And not only in the territory of their home region. Even considering that it is in China that there are most manufacturers of modern smartphones. Although, there are only two main competitors in the production of processors – TSMC and Samsung. These manufacturers really can and do top-end processors, although there are some questions for the Exynos, created by the Korean company.

The companies are already preparing to release a 5nm processor.  ZTE will win more than others

Samsung processors raise many questions.

There is also a third competitor in this area. While they can be considered Huawei. However, the company has reportedly faced major difficulties getting the components for its 5nm Kirin 1020 and Kirin 1000 chips.

Very soon, a real battle may unfold between TSMC and Samsung in the field of production of 5nm chips. But TSMC plans to move some of its production to the United States. The goal, of course, is to gain trust and new customers in the region, as in the future the company will not be able to supply chips directly or indirectly to its largest customer, Huawei. Let me remind you that not so long ago a ban was signed on the use Huawei of chips or their components created in the United States or under patents owned by American companies.

TSMC experimented and tried to establish the production of 3nm and 4nm processors, but so far they stopped at 5nm. But TSMC was able to at least do this, unlike Samsung, which did not succeed even this.

Competition among processor manufacturers

In general, competition in the 5nm space continues to be fierce. And ZTE is starting to race behind its main competitors. But so far this does not mean anything. The main thing is that the company is showing interest in this area and can become a competitor to world leaders. Or maybe not.

The companies are already preparing to release a 5nm processor.  ZTE will win more than others

ZTE can rise very strongly on the situation with Huawei.

Despite ZTE's late start in this direction, the current technology situation is very difficult. Especially in competition with Huawei. While the latter are spending their energy on an unequal battle with the US government, ZTE wants to add to its background and repeat what it did Xiaomi, “enticing” some of the customers of the disgraced manufacturer. There is another option, in which ZTE can become not a competitor, but a source of processors for Huawei, selling them hundreds of millions of chips and making very good money on it. You can even make the price higher, because Huawei will have no choice and they will buy chips for almost any money.

Under these circumstances, any 5nm ZTE chipset that could be produced would be very appropriate. If it manages to start mass production early enough in 2021, it could lead to Huawei actually running out of its current reserves that it managed to create. In general, the situation is interesting. We are waiting for the denouement.

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