China may be on the verge of another advanced chip breakthrough. According to South China Morning Post, citing local outlets icrank and Shanghai Morning Post, sources say Chinese startup Dishan Technology has made progress in developing a 2nm AI chip. The company is currently in the prototype verification phase for its first 2nm AI GPU.

Still, as the report notes, Dishan’s chip has not yet reached the tapeout stage. Sources from icrank add that Dishan Technology’s previously stated target—completing pre-tapeout verification by the end of 2025 and achieving mass production in Q1 2026—has been delayed. Based on its current R&D progress, the 2nm AI GPU is now expected to gradually enter commercial deployment between late 2028 and 2029.

Dishan’s GPU Architecture and CUDA Ecosystem Strategy

More details have also emerged, with South China Morning Post noting that the company unveiled the basic design of the GPU last July. It adopts a hybrid FinFET/GAA process along with a chiplet-based heterogeneous architecture, which the company said could deliver around a 40% improvement in energy efficiency compared with its predecessor. Mydrivers adds that the chip is equipped with the company’s in-house developed “Dishan Intelligent Core (DS-Core)” and adopts advanced 2.5D CoWoS-L packaging technology.

Meanwhile, South China Morning Post adds that Dishan plans to enhance its supporting toolchains, including CUDA-compatible compilers, to ensure the new chip can work with NVIDIA’s CUDA ecosystem.

Turning Designs into Chips: The Real Bottlenecks Ahead

Notably, as South China Morning Post points out, while Dishan’s design advances could position it closer to global front runners in AI chip design, it remains to be seen whether the company will be able to secure a domestic foundry capable of turning those designs into commercial products, given China is under strict US export controls on chipmaking equipment.

China currently has the capability to manufacture chips at the 7nm node. According to Reuters, sources say Huali Microelectronics—the contract manufacturing arm of China’s Hua Hong Group—is preparing a 7nm process at its Shanghai facility. If realized, it would make Huali the second Chinese chipmaker capable of producing chips at this node after SMIC, the country’s largest foundry.

In addition, South China Morning Post indicates that Dishan must still navigate several challenges as it moves toward mass production, including yield optimisation, compatibility with EDA tools, and supply chain constraints imposed by the U.S.

Dishan, which was founded in 2021, is said to have its R&D team led by several IEEE Fellows, along with experts from China’s national talent programme. The company focuses on the development of high-performance computing and sensor chips, as noted by South China Morning Post.

Read more

• [News] China Reportedly Targets 80% Chip Self-Sufficiency by 2030, Eyes Domestic 7nm Line and 14nm Production Stability
• [News] China Reportedly Aims to Boost 7nm, 5nm Output Fivefold in Two Years, Driven by SMIC, Hua Hong

(Photo credit: FREEPIK)