With sub-10nm node manufacturing requiring huge capex, a number of foundries have slowed down their investment pace while fabless chipmakers stick with 14/12nm products for cost reasons. Such scenario will likely turn a new leaf in the chip industry evolution, according to industry sources.

The cost of developing sub-10nm chips is prohibitively high. HiSilicon recently said it would spend at least US$300 million developing its new-generation SoC chip manufactured using 7nm process technology.

Fabless chip developers are aware that they have to spend big on sub-10nm chip development, and are concerned about whether such huge investment will pay off, the sources indicated.

Instead of developing the industry's first 7nm SoC chip, Qualcomm and MediaTek have both moved to enhance their upper mid-range offerings by rolling out respective new 14/12nm solutions, the sources noted. Questions have been raised about whether advancing to 7nm manufacturing node is necessary under the current circumstances, the sources said.

Both Qualcomm and MediaTek are believed to have postponed the launch of their 7nm chip solutions to 2019 from the previously-planned 2018, according to the sources. Nevertheless, the two major smartphone SoC providers may be racing to get their 5G solutions ready with respective first-generation 7nm chips, the sources said.

Both Qualcomm's and MediaTek's present focuses on enhancing upper mid-range solutions probably are in line with their strategy of giving priority to catering to actual demand, the sources indicated. Before 5G devices are ready for commercialization, focusing on the upper mid-range market segment could be their present and appropriate strategy, the sources continued.

Among pure-play foundries, only TSMC and Samsung Electronics have revealed their 7nm node technology roadmaps. UMC has shifted its investment focus to mature and specialty process nodes, while Globalfoundries has decided to put its 7nm FinFET program on hold indefinitely.

Globalfoundries said the company "is reshaping its technology portfolio to intensify its focus on delivering differentiated offerings for clients in high-growth markets." The company plans to shift development resources to make its 14/12nm FinFET platform "more relevant to these clients."

UMC has reiterated its efforts to enhance operating profitability. UMC has put less focus on entering the advanced-node chip race and moved to enhance its existing process portfolios particularly specialty process technologies.