As you know, the US Department of Commerce has blacklisted SMIC, the largest Chinese semiconductor manufacturer. Semiconductor equipment and technology suppliers must now obtain licenses from the US government to supply their SMIC products. Licenses are needed in the case of technical processes for the manufacture of products according to standards of 14 nm or less. US suppliers including Applied Materials, Lam Research, KLA-Tencor and Axcelis have already submitted bids, according to TrendForce.
According to TrendForce, SMIC will be able to expand production, and by the end of 2021 it will occupy 4.2% of the world market. However, the company will have to limit itself to “mature” technical processes, since machines for manufacturing products according to advanced standards will not be available to it.
The sanctions imposed by the US Department of Commerce and affecting the long-term capacity planning and development strategies of SMIC are expected to reduce the Chinese company’s capital expenditure in 2021 by 25% compared to 2020. Most of the capex will go towards expanding capacity and building a new plant in Beijing.
SMIC now ranks fifth in the world in terms of production, generating more than 70% of revenue in China and other countries in the Asia-Pacific region. More than 80% of the income comes from the production of products according to the standards of 0.18 microns, 55 nm and 40 nm.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
