China’s Largest and Most Advanced Foundry Champion
Semiconductor Manufacturing International Corporation (SMIC), founded in 2000, has grown to become China’s most advanced and largest pure-play foundry, and ranks third globally by revenue after TSMC and Samsung.
Backed by state-linked shareholders, SMIC is a linchpin in Beijing’s drive to localise semiconductor manufacturing and reduce reliance on Western chipmakers.
Core Beneficiary of China’s Semiconductor Self-Sufficiency Agenda
Since the US imposed trade restrictions in 2017, China has aggressively invested in building domestic chip capabilities.
SMIC has been a key beneficiary, supported by policy, subsidies, and financing. China’s self-sufficiency rate in semiconductors has risen from 15% in 2019 to about 25% today.
While still below its 70% target by 2025, it remains committed to this strategic priority. localisation.
Technology Lag Persists, But the Gap Is Narrowing
SMIC currently produces chips at the 7nm node and is expected to move to 5nm by 2025.
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