SMIC (China's TSMC equivalent) currently has manufacturing capacity for 50,000 wafers per month at 7 nanometers, but to date has only demonstrated 7nm production for smartphone chips, which are smaller and easier to manufacture with better yields than large AI chips, yet based on smartphone-to-GPU production timelines (iPhones reached 5nm in 2020 while Nvidia's first 5nm GPU was the H100 in 2022-23), SMIC will likely be able to produce large 7nm AI chips in high volumes this year.