SMIC was included in the so-called Entity List, which prevents it from trading with American companies and obtaining support from them for already operated equipment, which is very important in the case of production. Now this company also solves how and where to obtain raw materials and materials for the production of chips.
The focus of SMIC’s development has thus changed to chiplets and advanced encapsulation technologies, which will also be very important in the future, and the company could benefit from their development in the future. But now SMIC is tackling a more pressing problem with the raw materials and materials it needs to keep its factories running.
The ambitious SMIC is currently being kept in check and it is not valid for it that in recent years it has begun to invest intensively in research and development. SMIC has always been a company that has been making chips using long-established technologies, and it has also been very successful, so it has decided to try to develop much more advanced processes to catch up with even the best companies in the industry. As early as 2014, it invested only 9.5% of its revenues in research (USD 190 million), which more than doubled to 20.5% the year before, and spending rose to $ 629 million (but also helped by the Chinese government and local government). council). The new factories in Beijing and Shanghai also have a decent monthly output of more than 50,000 300mm wafers, and this year’s investments also brought the above-mentioned 7nm production process, which few people offer today.
Now the company only hopes that the US Department of Commerce will allow the sale of the necessary material, but the decision itself may take weeks, so there is a real risk that SMIC will have to stop at least temporarily chip production using its most advanced processes available.
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