SMIC Defies US Sanctions, Now 3rd Largest Chip Foundry Globally
0SMIC Defies US Sanctions, Now 3rd Largest Chip Foundry Globally
n a remarkable feat that defies the odds, China's Semiconductor Manufacturing International Corporation (SMIC) has risen to become the world's third-largest chip foundry by revenue in Q1 2024. This achievement is even more impressive considering the trade restrictions imposed on the company by the United States in 2022.
According to the latest report from Counterpoint Research, the global foundry industry witnessed a 12 percent year-on-year revenue increase in the first quarter of 2024. While Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Foundry maintained their positions as the top two foundries, SMIC's better-than-expected quarterly results propelled it past competitors like UMC and Global Foundries, securing the coveted third spot.
SMIC's newfound prominence is sure to raise eyebrows in the United States, which had imposed sanctions to restrict the company's access to cutting-edge technology and advanced chipmaking tools from American companies. The concern stems from suspicions that SMIC may have violated export curbs to produce chips for Chinese tech giant Huawei.
Despite these challenges, SMIC has demonstrated remarkable resilience and innovation. The company managed to develop a complex 7nm chip without access to extreme ultraviolet (EUV) equipment from Dutch manufacturer ASML, which is prohibited from selling to SMIC due to U.S. sanctions. SMIC reportedly employed a technique known as multiple patterning, which repeats the lithographic process using DUV equipment, to achieve this feat.
The Huawei Pura series, powered by SMIC's Kirin 9010 chip based on an advanced 7nm process, further exemplifies the company's technological prowess. While TSMC and Samsung have already started mass-producing 3nm chips, SMIC's ability to produce 5nm chips using DUV technology, although expensive, showcases its determination to stay competitive.
As the global semiconductor industry continues to evolve and geopolitical tensions persist, SMIC's remarkable achievement serves as a testament to China's ambitions in the chip manufacturing realm. Stay tuned to our channel for in-depth analysis, expert insights, and the latest developments in this captivating story of technological excellence and resilience against adversity.