Semiconductor Manufacturing International Corp (SMIC) gears up to double its production by 2025

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It is yet to be seen how successful SMIC will be in competing with more advanced manufacturers like those in Taiwan and Samsung

www.orfonline.org, Sept. 25, 2021 – 

One of the unforeseeable consequences of the COVID-19 pandemic is the shortage of semiconductor chips across the world. According to a report from Susquehanna Financial Group, the global chip crunch has gotten worse since July, and the wait time–the gap between the companies placing orders for semiconductors and receiving them–has hit an all-time high at 21 weeks. It has impacted several sectors, especially the consumer electronics and automobiles industries. The situation is much worse for a few Chinese companies who face the dual challenge of logistics disruption caused by the pandemic and US sanctions. However, Semiconductor Manufacturing International Corp (SMIC), China's would-be national semiconductor champion, is determined to fill in the void by scaling up.

SMIC is on track with the construction of new chip fabrication plants in different cities, despite lingering risks of US restrictions that may prevent its acquisition of production equipment. On September 3, SMIC announced its plan to establish a new factory in the Lin-Gang Special area–part of Shanghai's free trade zone. The proposed US $8.87-billion worth foundry has a planned monthly production capacity of 100,000 12-inch wafers. Earlier in March this year, SMIC announced that it would work with the Shenzhen government to invest in a US $2.35 billion project to produce 28 nanometre (nm) and above integrated circuits to produce 40,000 12-inch wafers per month. Last year, it unveiled its plan to partner with Beijing Economic-Technological Development Area Management Committee (BDAC) to develop facilities to produce 12-inch wafers. If all this is accomplished, SMIC's output should nearly double by 2025. The new investments aim to ease the semiconductor shortage while reducing Chinese demand for imported semiconductors.

SMIC is on track with the construction of new chip fabrication plants in different cities, despite lingering risks of US restrictions that may prevent its acquisition of production equipment

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