Semiconductor Manufacturing International Corporation

{{short description|Chinese semiconductor foundry}}

{{Infobox company

| name = Semiconductor Manufacturing International Corporation

| native_name = 中芯国际集成电路制造有限公司 (中芯国际)

| logo = SMIC logo.svg

| image = SMIC,Shenzhen Factory.jpg

| image_caption = SMIC's "SZ" Fabrication Facility in Shenzhen, China

| type = Public; State-owned enterprise

| traded_as = {{SSE|688981}} (A share)
{{hkex|0981}} (H share)

| foundation = {{start date and age|2000|4|3}}
Cayman Islands
(legal domicile)

| location = Shanghai, China

| founder = Zhang Rujing

| key_people = Haijun Zhao (Co-CEO)
Liang Mong Song (Co-CEO)

| num_employees = 17,354 (2020)

| industry = Semiconductors

| revenue = {{increase}}US$7.27 billion (2022){{cite news | url=https://www.reuters.com/technology/chinas-smic-q4-revenue-up-2-yoy-16-bln-fy-revenues-reach-727-bln-2023-02-09/ | title=Chinese chipmaker SMIC warns of weak outlook despite record 2022 revenue | newspaper=Reuters | date=10 February 2023 | access-date=2023-02-14 | archive-date=2023-05-30 | archive-url=https://web.archive.org/web/20230530094738/https://www.reuters.com/technology/chinas-smic-q4-revenue-up-2-yoy-16-bln-fy-revenues-reach-727-bln-2023-02-09/ | url-status=live }}{{Cite news | url=https://www.cnbc.com/2023/02/10/chinas-biggest-chipmaker-smic-posts-record-2022-revenue.html#:~:text=SMIC%20said%20Thursday%20that%202022,above%2030%25%20for%20the%20company | title=China's biggest chipmaker SMIC posts record 2022 revenue but warns of a tough year ahead | website=CNBC | access-date=2023-02-14 | archive-date=2023-07-31 | archive-url=https://web.archive.org/web/20230731155207/https://www.cnbc.com/2023/02/10/chinas-biggest-chipmaker-smic-posts-record-2022-revenue.html#:~:text=SMIC%20said%20Thursday%20that%202022,above%2030%25%20for%20the%20company | url-status=live }}

| operating_income =

| net_income = {{increase}}US$1.818 billion (2022){{cite news | url=https://www.reuters.com/technology/chinas-smic-q4-revenue-up-2-yoy-16-bln-fy-revenues-reach-727-bln-2023-02-09/ | title=Chinese chipmaker SMIC warns of weak outlook despite record 2022 revenue | newspaper=Reuters | date=10 February 2023 | access-date=2023-02-14 | archive-date=2023-05-30 | archive-url=https://web.archive.org/web/20230530094738/https://www.reuters.com/technology/chinas-smic-q4-revenue-up-2-yoy-16-bln-fy-revenues-reach-727-bln-2023-02-09/ | url-status=live }}

| assets = {{increase}}US$36.1 billion (2021)

| homepage = {{Official URL}}

}}

Semiconductor Manufacturing International Corporation (SMIC) is a partially state-owned publicly listed Chinese pure-play semiconductor foundry company. It is the largest contract chip maker in mainland China.

SMIC is headquartered in Shanghai{{Cite news|url=https://asia.nikkei.com/Companies/Semiconductor-Manufacturing-International-Corp|title=SMIC|website=Nikkei Asian Review|access-date=2019-05-26|archive-date=2019-05-26|archive-url=https://web.archive.org/web/20190526233322/https://asia.nikkei.com/Companies/Semiconductor-Manufacturing-International-Corp|url-status=live}} and incorporated in the Cayman Islands.{{cite web|url=https://www.nasdaq.com/markets/ipos/company/semiconductor-manufacturing-international-corp-600796-37732|title=SMIC|website=Nasdaq|access-date=2019-05-26|archive-date=2019-05-26|archive-url=https://web.archive.org/web/20190526233322/https://www.nasdaq.com/markets/ipos/company/semiconductor-manufacturing-international-corp-600796-37732|url-status=live}} It has wafer fabrication sites throughout mainland China, offices in the United States, Italy, Japan, and Taiwan, and a representative office in Hong Kong.{{cite web|title=SMIC - Contact Us|url=http://www.smics.com/eng/contact_us.php|url-status=dead|archive-url=https://web.archive.org/web/20120104212308/http://www.smics.com/eng/contact_us.php|archive-date=4 January 2012|access-date=6 January 2012|work=SMIC website}} It provides integrated circuit (IC) manufacturing services from 350 nm to 7 nm{{cite news | url=https://www.bloomberg.com/news/articles/2022-07-21/china-s-top-chipmaker-makes-big-tech-advances-despite-us-curbs | title=China's Top Chipmaker Achieves Breakthrough Despite US Curbs | newspaper=Bloomberg.com | date=21 July 2022 | access-date=2022-07-21 | archive-date=2023-01-09 | archive-url=https://web.archive.org/web/20230109131542/https://www.bloomberg.com/news/articles/2022-07-21/china-s-top-chipmaker-makes-big-tech-advances-despite-us-curbs | url-status=live }} process technologies. The Financial Times reported that SMIC is expected to offer 5 nm process-node IC manufacturing services in 2024.{{Cite web |url=https://www.ft.com/content/b5e0dba3-689f-4d0e-88f6-673ff4452977 |title=China on cusp of next-generation chip production despite US curbs |date=6 February 2024 |website=ft.com |access-date=15 February 2024 |archive-date=15 February 2024 |archive-url=https://web.archive.org/web/20240215224049/https://www.ft.com/content/b5e0dba3-689f-4d0e-88f6-673ff4452977 |url-status=live }}

State-owned civilian and military telecommunications equipment provider Datang Telecom Group as well as the China Integrated Circuit Industry Investment Fund are major shareholders of SMIC.{{Cite web|title=Annual Report 2019|url=http://northeurope.blob.euroland.com/press-releases-attachments/1219270/HKEX-EPS_20200423_9246885-0.PDF|url-status=live|archive-url=https://web.archive.org/web/20200906010710/http://northeurope.blob.euroland.com/press-releases-attachments/1219270/HKEX-EPS_20200423_9246885-0.PDF|archive-date=2020-09-06|publisher=Semiconductor Manufacturing International Corporation|pages=70}}{{Cite news|last=Sheng|first=Wei|date=May 18, 2020|title=SMIC gets $2 billion from China's state-backed funds|work=TechNode|url=https://technode.com/2020/05/18/chinas-state-backed-funds-inject-2-billion-into-local-chip-maker-smic/|url-status=live|access-date=September 5, 2020|archive-date=July 6, 2020|archive-url=https://web.archive.org/web/20200706092810/https://technode.com/2020/05/18/chinas-state-backed-funds-inject-2-billion-into-local-chip-maker-smic/}}{{Cite news|last=Strumpf|first=Dan|date=2020-09-26|title=U.S. Sets Export Controls on China's Top Chip Maker|language=en-US|work=The Wall Street Journal|url=https://www.wsj.com/articles/u-s-sets-export-controls-on-chinas-top-chip-maker-11601118353|access-date=2020-09-26|issn=0099-9660|archive-date=2020-11-12|archive-url=https://web.archive.org/web/20201112220457/https://www.wsj.com/articles/u-s-sets-export-controls-on-chinas-top-chip-maker-11601118353|url-status=live}}{{Cite news|last=Whalen|first=Jeanne|date=September 26, 2020|title=U.S. restricts tech exports to China's biggest semiconductor manufacturer in escalation of trade tensions|newspaper=The Washington Post|url=https://www.washingtonpost.com/technology/2020/09/26/us-restricts-exports-chinas-smic/|access-date=October 13, 2020|archive-date=November 12, 2020|archive-url=https://web.archive.org/web/20201112221745/https://www.washingtonpost.com/technology/2020/09/26/us-restricts-exports-chinas-smic/|url-status=live}} Notable customers include Huawei, Qualcomm,{{Cite news |title=China's biggest chipmaker has applied for 'voluntary delisting' from the New York Stock Exchange amid the trade war and Trump's crackdown on Chinese tech (SMI) |url=https://www.ctpost.com/technology/businessinsider/article/China-s-biggest-chipmaker-has-applied-for-13896220.php |url-status=live |archive-url=https://web.archive.org/web/20190526231640/https://www.ctpost.com/technology/businessinsider/article/China-s-biggest-chipmaker-has-applied-for-13896220.php |archive-date=2019-05-26 |access-date=2019-05-26 |website=Connecticut Post}} (published 05-25-2019){{cite news|title=SMIC Receives Supplier Award from Qualcomm |url=http://www.smics.com/eng/press/media_press_details.php?id=85444 |access-date=6 January 2012 |newspaper=SMIC press release |date=14 December 2011 |url-status=dead |archive-url=https://web.archive.org/web/20120209071850/http://www.smics.com/eng/press/media_press_details.php?id=85444 |archive-date=9 February 2012 }} Broadcom,{{cite web|title=Broadcom 2010 Annual Report|url=https://materials.proxyvote.com/Approved/111320/20110317/AR_82940/HTML2/broadcom-ar2010_0022.htm|access-date=6 January 2012|page=20|archive-date=11 January 2016|archive-url=https://web.archive.org/web/20160111100035/https://materials.proxyvote.com/Approved/111320/20110317/AR_82940/HTML2/broadcom-ar2010_0022.htm|url-status=live}} and Texas Instruments.{{cite news |title=SMIC Earns Texas Instruments' Supplier Excellence Award for 2010 |url=http://www.smics.com/eng/press/media_press_details.php?id=58431 |access-date=6 January 2012 |newspaper=SMIC press release |date=14 April 2011 |url-status=dead |archive-url=https://web.archive.org/web/20111029041259/http://www.smics.com/eng/press/media_press_details.php?id=58431 |archive-date=29 October 2011 }} SMIC is a major shareholder and supplier to Brite Semiconductor.{{Cite news |last1=Alper |first1=Alexandra |last2=Baptista |first2=Eduardo |date=December 13, 2023 |title=China chip firm powered by US tech and money avoids Biden's crackdown |url=https://www.reuters.com/technology/china-chip-firm-powered-by-us-tech-money-avoids-bidens-crackdown-2023-12-13/ |access-date=December 13, 2023 |work=Reuters}} In response to US sanctions on the Chinese chip industry in the early 2020s, SMIC started on a wave of expansion in the form of joint ventures with China's state semiconductor fund.{{Cite news |date=2023-02-10 |title=China's top chip maker faces delays at new plant amid US tool ban |url=https://www.scmp.com/tech/tech-war/article/3209797/tech-war-chinas-top-chip-maker-smic-admits-delays-new-plant-us-tightens-export-semiconductor |access-date=2023-03-18 |website=South China Morning Post |language=en |archive-date=2023-03-18 |archive-url=https://web.archive.org/web/20230318164004/https://www.scmp.com/tech/tech-war/article/3209797/tech-war-chinas-top-chip-maker-smic-admits-delays-new-plant-us-tightens-export-semiconductor |url-status=live }} {{As of|2024}}, it is the world's third largest contract chip maker.{{Cite web |date=2024-05-23 |title=China's SMIC rises to third spot in global chip foundry sales rankings |url=https://www.scmp.com/tech/big-tech/article/3263791/chinas-smic-ranks-worlds-third-largest-chip-foundry-sales-first-quarter-back-strong-domestic-demand |access-date=2024-05-26 |website=South China Morning Post |language=en}}

History

SMIC was founded on April 3, 2000, and is headquartered in Shanghai. It was incorporated in the Cayman Islands as a limited liability company. It quickly built a fully-owned plant in Shanghai, acquired a Motorola plant in Tianjin, and then began to build a fully-owned plant in Beijing. SMIC also became involved in two projects in Chengdu and Wuhan, which reversed a common pattern in Chinese development of government building, operating, then transferring industrial projects, such that SMIC operated the company, but the capital costs were borne by municipal government, relieving SMIC of the major cost of its fab plants.{{cite web|url=https://www.hbs.edu/faculty/Pages/item.aspx?num=36733|title=Semiconductor Manufacturing International Corporation: 'Reverse BOT'|website=Harvard Business School|access-date=2019-05-26|archive-date=2018-10-01|archive-url=https://web.archive.org/web/20181001123133/https://www.hbs.edu/faculty/Pages/item.aspx?num=36733|url-status=live}} (published 01-2009)

In September 2003, SMIC raised $630 million in funding from investors, including: Walden International (a venture capital firm based in San Francisco, California), Oak Investment Partners, Temasek and others.{{Cite web |title=China's SMIC raises $630 million in funding |url=https://www.eetimes.com/chinas-smic-raises-630-million-in-funding/ |date=2003-09-14 |website=EETimes}} Israeli Venture Capital fund 'Vertex Israel' also participated in the funding round.{{Cite web |title=Vertex Israel invests in Chinese chipmaker |url=https://www.themarker.com/misc/2003-09-21/ty-article/0000017f-e783-df2c-a1ff-ffd3ba3d0000 |date=2003-09-21 |website=TheMarker}}

On June 23, 2015, Huawei, Qualcomm Global Trading Pte. Ltd., IMEC International, and SMIC announced the formation of the SMIC Advanced Technology Research & Development (Shanghai) Corporation, an equity joint venture company.{{cite news |last1=Mozur |first1=Paul |date=23 June 2015 |title=Qualcomm in Venture With Chinese Chip Maker |url=https://www.nytimes.com/2015/06/24/business/international/qualcomm-in-venture-with-chinese-chip-maker.html |url-status=live |archive-url=https://web.archive.org/web/20190526233321/https://www.nytimes.com/2015/06/24/business/international/qualcomm-in-venture-with-chinese-chip-maker.html |archive-date=2019-05-26 |access-date=2019-05-26 |website=The New York Times}} (published 06-23-2015)

On October 14, 2016, Ningbo Semiconductor International Corporation was jointly established by China IC Capital (the wholly owned investment fund of SMIC), Ningbo Senson Electronics Technology Co., Ltd, and Beijing Integrated Circuit Design and Testing Fund with a registered capital of RMB355 million, equal to US$52.8 million. SMIC holds 66.76% of the ownership interest. NSI will develop analog and specialty semiconductor process technology platforms in the areas of high-voltage analog, radio frequency, and optoelectronics. These developments will support customers in IC design and product development for applications in smart home, industrial, and automotive electronics, new generations of radio communications, augmented reality, virtual reality, mixed reality, and other specialty systems.{{cite web |url=http://www.smics.com/attachment/20170428182324285728854_en.pdf |title=SMIC 2017 Attachment |website=SMIC |access-date=2017-05-15 |archive-url=https://web.archive.org/web/20170613024159/http://smics.com/attachment/20170428182324285728854_en.pdf |archive-date=2017-06-13 |url-status=dead }} (published 2018)

In 2018, SMIC had gross profits of $747 million and net profits of $149, with $3.6 billion in revenues. It apparently spend around $550 million on research and development, or about 16 percent of sales.{{cite news|url=https://www.ft.com/content/a002a9e4-1a42-11e9-b93e-f4351a53f1c3|title=China's ability to make computer chips still 'years behind' industry leaders|website=Financial Times|date=22 January 2019 |access-date=2019-05-26|archive-date=2019-05-26|archive-url=https://web.archive.org/web/20190526233321/https://www.ft.com/content/a002a9e4-1a42-11e9-b93e-f4351a53f1c3|url-status=live}} (published 01-21-2019) On 9 March 2018, SMIC and the government of Shaoxing established a joint venture, United Nova Technology.{{Cite web |last=Li |first=Jiaxing |date=26 April 2023 |title=SMIC-backed Chinese contract chip maker seeks US$1.4 billion in Shanghai IPO |url=https://www.scmp.com/business/china-business/article/3218409/smic-backed-chinese-contract-chip-maker-seeks-raise-us14-billion-shanghais-star-market |access-date=15 June 2024 |website=South China Morning Post |language=en |archive-date=15 June 2024 |archive-url=https://web.archive.org/web/20240615183147/https://www.scmp.com/business/china-business/article/3218409/smic-backed-chinese-contract-chip-maker-seeks-raise-us14-billion-shanghais-star-market |url-status=live }} On May 18, 2018, ground was broken on the manufacturing base for SMIC in Shaoxing. SMIC was building a plant that would be the first in China to use 14-nanometer production technology.{{cite web|url=http://www.ezhejiang.gov.cn/2019-05/23/c_376933_2.htm|title=Zhejiang province committed to Yangtze River Delta integration|website=Zhejian China|access-date=2019-05-26|archive-date=2019-05-26|archive-url=https://web.archive.org/web/20190526231642/http://www.ezhejiang.gov.cn/2019-05/23/c_376933_2.htm|url-status=live}} (published 05-23-2019) The company said it would increase its investment capacity by 20% in February 2019.{{Cite news|url=https://asia.nikkei.com/Business/Companies/China-s-top-chipmaker-SMIC-to-boost-capex-20-despite-downturn|title=China's top chipmaker SMIC to boost capex 20% despite downturn|website=Nikkei Asian Review|access-date=2019-05-26|archive-date=2019-05-26|archive-url=https://web.archive.org/web/20190526233321/https://asia.nikkei.com/Business/Companies/China-s-top-chipmaker-SMIC-to-boost-capex-20-despite-downturn|url-status=live}} (published 02-15-2019)

Current{{when|date=June 2020}} co-CEOs are Zhao Haijun and Mong Song Liang. Zixue Zhou serves as chairman of the board.{{cite web|url=https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=1379992|title=Company Overview of Semiconductor Manufacturing International Corporation|website=Bloomberg|access-date=2019-05-26|archive-date=2020-09-06|archive-url=https://web.archive.org/web/20200906010536/https://www.bloomberg.com/markets/stocks?cic_redirect=fallback|url-status=live}} In May 2019, it was said that SMIC's co-chiefs, Zhao Haijun and Liang Mong-song were at odds over how to focus the company.{{cite news |last1=Hille |first1=Kathrin |date=9 May 2019 |title=Co-chiefs of China's top chipmaker SMIC fighting over strategy |website=Financial Times |url=https://www.ft.com/content/994bca54-7212-11e9-bf5c-6eeb837566c5 |url-status=live |access-date=2019-05-26 |archive-url=https://web.archive.org/web/20190526231642/https://www.ft.com/content/994bca54-7212-11e9-bf5c-6eeb837566c5 |archive-date=2019-05-26}} (published 05-09-2019)

On May 24, 2019, SMIC announced it would voluntarily delist from the New York Stock Exchange (NYSE), citing low trade volumes. Along with low US trading volumes, the company named the high administrative cost of maintaining the NYSE listing.; it joined the exchange 15 years before.{{Cite news|url=https://techcrunch.com/2019/05/24/smic-nyse-delisting/|title=China's largest chipmaker is delisting from the NYSE – TechCrunch|website=techcrunch.com|date=25 May 2019 |access-date=2019-05-26}}{{Cite news|url=https://www.scmp.com/business/article/3011737/chinas-biggest-chip-maker-smic-withdraw-new-york-stock-exchange-trade-spat|title=China's biggest chip maker to delist from NYSE as US targets tech|website=South China Morning Post|date=24 May 2019|access-date=2019-05-26|archive-date=2019-05-26|archive-url=https://web.archive.org/web/20190526180327/https://www.scmp.com/business/article/3011737/chinas-biggest-chip-maker-smic-withdraw-new-york-stock-exchange-trade-spat|url-status=live}} And following Huawei blacklisting by the United States government.{{Cite news |url=https://www.cnet.com/news/chinese-chip-giant-delists-from-nyse-following-huawei-ban/ |title=Chinese chip giant SMIC to delist from NYSE following Huawei ban |website=Cnet |date=24 May 2019 |access-date=26 May 2019 |archive-date=26 May 2019 |archive-url=https://web.archive.org/web/20190526180313/https://www.cnet.com/news/chinese-chip-giant-delists-from-nyse-following-huawei-ban/ |url-status=live }}{{Cite news|url=http://fortune.com/2019/05/25/trumps-huawei-ban-a-bane-for-apple/?xid=gn_editorspicks|title=Trump's Huawei Ban: A Bane for Apple?|website=Fortune|date=25 May 2019|access-date=26 May 2019|archive-date=6 September 2020|archive-url=https://web.archive.org/web/20200906010507/https://fortune.com/2019/05/25/trumps-huawei-ban-a-bane-for-apple/?xid=gn_editorspicks|url-status=live}}

In 2019, Qualcomm, Huawei, and IMEC were still minority shareholders in SMIC's R&D arm.

In May 2020, in support of the country's Made in China 2025 program; the China Integrated Circuit Industry Investment Fund and the Shanghai Integrated Circuit Industry Investment Fund invested a combined US$2 billion, gaining, respectively, 23.08% and 11.54% ownership of SMIC.{{Cite news |last1=Sheng |first1=Wei |title=SMIC gets $2 billion from China's state-backed funds |url=https://technode.com/2020/05/18/chinas-state-backed-funds-inject-2-billion-into-local-chip-maker-smic/ |website=technode.com |date=18 May 2020 |publisher=TN Media |access-date=24 August 2020 |archive-date=6 July 2020 |archive-url=https://web.archive.org/web/20200706092810/https://technode.com/2020/05/18/chinas-state-backed-funds-inject-2-billion-into-local-chip-maker-smic/ |url-status=live }} In July 2020 SMIC issued 1,685,620,000 shares at 27.46 yuan per share on the STAR Market of the Shanghai Stock Exchange, raising 46.28 billion yuan ($6.62 billion).{{citation | url = https://www.cnbc.com/2020/07/16/smic-chinas-biggest-chipmaker-surges-in-shanghai-listing.html | title = Shares of China's biggest chipmaker SMIC surge nearly 202% in Shanghai debut | date = 15 Jul 2020 | first = Arjun | last = Kharpal | work = www.cnbc.com | access-date = 16 July 2020 | archive-date = 16 July 2020 | archive-url = https://web.archive.org/web/20200716171732/https://www.cnbc.com/2020/07/16/smic-chinas-biggest-chipmaker-surges-in-shanghai-listing.html | url-status = live }}

On July 21, 2022, the company established 7 nm technology.{{Cite news |date=2022-07-21 |title=China's Top Chipmaker Achieves Breakthrough Despite US Curbs |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2022-07-21/china-s-top-chipmaker-makes-big-tech-advances-despite-us-curbs |access-date=2022-07-21 |archive-date=2023-01-09 |archive-url=https://web.archive.org/web/20230109131542/https://www.bloomberg.com/news/articles/2022-07-21/china-s-top-chipmaker-makes-big-tech-advances-despite-us-curbs |url-status=live }} This technology was achieved in two years.{{cite web |date=August 30, 2022 |title=China's top chipmaker SMIC just achieved an Intel-like breakthrough |url=https://interestingengineering.com/innovation/chinas-top-chipmaker-smic-7-nm-breakthrough |access-date=September 1, 2022 |archive-date=July 31, 2023 |archive-url=https://web.archive.org/web/20230731155212/https://interestingengineering.com/innovation/chinas-top-chipmaker-smic-7-nm-breakthrough |url-status=live }}

=Litigation with TSMC=

The company was the target of a lawsuit brought by TSMC, accusing SMIC of misappropriating TSMC intellectual property.{{cite news|title=TSMC v. SMIC, 161 Cal.App. 4th 581, 74 Cal.Rptr.3d 328 (March 27, 2008)|url=http://www.courtinfo.ca.gov/opinions/archive/A117182.PDF|access-date=2009-10-09|archive-date=2023-09-15|archive-url=https://web.archive.org/web/20230915125954/http://www.courtinfo.ca.gov/moved.htm|url-status=dead}}{{failed verification|date=April 2022}} The first round of litigation ended in 2005 with a $175 million settlement. A second round was opened in 2006. The liability phase of the lawsuit began on September 9, 2009, in Oakland, California,{{cite news|last=Lammers|first=David|date=2009-09-10|title=TSMC vs. SMIC Trial Commences in Oakland|work=semiconductor.net|publisher=Semiconductor International|url=http://www.semiconductor.net/article/340209-TSMC_vs_SMIC_Trial_Commences_in_Oakland.php|url-status=dead|access-date=2009-10-09|archive-url=https://web.archive.org/web/20090916220252/http://www.semiconductor.net/article/340209-TSMC_vs_SMIC_Trial_Commences_in_Oakland.php|archive-date=2009-09-16}} and the jury found SMIC liable on 61 out of 65 claims.{{cite news|last=Longstreth|first=Andrew|date=2009-11-05|title=Jeffrey Chanin of Keker & Van Nest|work=AmLaw Litigation Daily|publisher=Press Release|url=http://www.law.com/jsp/tal/digestTAL.jsp?id=1202435222112|access-date=2009-11-05}} SMIC entered into a settlement agreement with TSMC to resolve all pending lawsuits between the parties.{{cite news|date=2009-11-10|title=SMIC Settles All Pending Lawsuits with TSMC: Anticipates No Disruption to Customers.|newspaper=SMIC press release|url=http://www.smics.com/eng/press/media_press_details.php?id=51107|access-date=2012-01-06}}{{dead link|date=November 2016|bot=InternetArchiveBot|fix-attempted=yes}}

= U.S. sanctions =

{{See also|United States sanctions against China|Military-civil fusion}}

In September 2020, the United States Department of Commerce declared SMIC a military end-user and required that American technology companies dealing with it obtain a license. The action elicited a rebuke from China's Foreign Ministry spokesman Zhao Lijian.{{Cite news|date=2020-09-28|title=China in response to possible SMIC sanctions says U.S. bullying firms|url=https://www.reuters.com/article/us-usa-china-smic-idUSKBN25Y0R1|access-date=2020-09-28|work=Reuters|archive-date=2020-09-28|archive-url=https://web.archive.org/web/20200928120822/https://www.reuters.com/article/us-usa-china-smic-idUSKBN25Y0R1|url-status=live}}

On 4 October 2020, SMIC stated that the U.S. Bureau of Industry and Security had informed some of SMIC's suppliers that according to U.S. export control regulations they must apply for an export license in advance before supplying SMIC with some American equipment, accessories and original products.{{cite web|last1=SMIC|title=Further news about U.S. export restrictions|url=https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1004/2020100400080_c.pdf|archive-url=https://web.archive.org/web/20201005035926/https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1004/2020100400080_c.pdf|archive-date=5 October 2020|access-date=4 October 2020|website=HKEX News}} In December 2020, the United States Department of Defense named SMIC as a company "owned or controlled" by the People's Liberation Army and thereby prohibited any American company or individual from investing in it.{{Cite news|last1=Alper|first1=Alexandra|last2=Pamuk|first2=Humeyra|date=2020-12-03|title=Trump administration adds China's SMIC and CNOOC to Defense blacklist|language=en|work=Reuters|url=https://www.reuters.com/article/us-usa-china-military-companies-idUSKBN28D3CR|access-date=2020-12-04|archive-date=2020-12-09|archive-url=https://web.archive.org/web/20201209181441/https://www.reuters.com/article/us-usa-china-military-companies-idUSKBN28D3CR|url-status=live}}

In December 2020, the United States Department of Commerce added SMIC to the Bureau of Industry and Security's Entity List.{{Cite news|last1=Alper|first1=Alexandra|last2=Shepardson|first2=David|last3=Pamuk|first3=Humeyra|date=2020-12-18|title=U.S. blacklists dozens of Chinese firms including SMIC|language=en|work=Reuters|url=https://www.reuters.com/article/us-usa-china-sanctions-exclusive-idUSKBN28S0HL|access-date=2020-12-18|archive-date=2020-12-18|archive-url=https://web.archive.org/web/20201218072120/https://www.reuters.com/article/us-usa-china-sanctions-exclusive-idUSKBN28S0HL|url-status=live}}{{Cite news|date=December 18, 2020|title=Commerce Adds China's SMIC to the Entity List, Restricting Access to Key Enabling U.S. Technology|url=https://www.commerce.gov/news/press-releases/2020/12/commerce-adds-chinas-smic-entity-list-restricting-access-key-enabling|access-date=2020-12-18|website=U.S. Department of Commerce|language=en|archive-date=2020-12-18|archive-url=https://web.archive.org/web/20201218115639/https://www.commerce.gov/news/press-releases/2020/12/commerce-adds-chinas-smic-entity-list-restricting-access-key-enabling|url-status=live}}

On 6 September 2023, Huawei launched its new Mate 60 smartphone. The phone was powered by a new Kirin 9000s chip, made in China by SMIC.{{Cite news |last=Murray |first=Warren |date=2023-09-06 |title=China dodges western 5G chip embargo with new Huawei Mate 60 phone |language=en-GB |work=The Guardian |url=https://www.theguardian.com/technology/2023/sep/06/huawei-mate-60-pro-mobile-phone-china-dodges-5g-chip-embargo |access-date=2023-09-06 |issn=0261-3077 |archive-date=2023-09-20 |archive-url=https://web.archive.org/web/20230920003955/https://www.theguardian.com/technology/2023/sep/06/huawei-mate-60-pro-mobile-phone-china-dodges-5g-chip-embargo |url-status=live }} This processor was the first to use the new 7 nanometer SMIC technology. TechInsights had stated in 2022 that it believed SMIC had managed to produce 7 nm chips, even though faced by a harsh sanctions regime, by adapting simpler machines that it could still purchase from ASML. Holger Mueller of Constellation Research Inc. said that this showed that the US sanctions might have had the effect of sending China's chip-making industry into overdrive.{{Cite web |date=2023-09-04 |title=Huawei's latest smartphone showcases China's chip manufacturing breakthrough |url=https://siliconangle.com/2023/09/04/huaweis-latest-smartphone-showcases-chinas-chip-manufacturing-breakthrough/ |access-date=2023-09-06 |website=SiliconANGLE |language=en-US |archive-date=2023-09-06 |archive-url=https://web.archive.org/web/20230906183010/https://siliconangle.com/2023/09/04/huaweis-latest-smartphone-showcases-chinas-chip-manufacturing-breakthrough/ |url-status=live }} In 2023, with the release of Huawei's Mate 60 Pro, a phone that contained a chip that may violate current trade restrictions, U.S. Congressman Mike Gallagher said that, "U.S. Commerce Department should end all technology exports to Huawei and China's top semiconductor firm following the discovery of new chips in Huawei phones," and that, "this chip likely could not be produced without US technology and thus SMIC may have violated the Department of Commerce’s Foreign Direct Product Rule."{{Cite news |last=Nellis |first=Stephen |date=2023-09-06 |title=US lawmaker calls for ending Huawei, SMIC exports after chip breakthrough |language=en |work=Reuters |url=https://www.reuters.com/technology/us-lawmaker-calls-ending-huawei-smic-exports-after-chip-breakthrough-2023-09-06/ |access-date=2023-09-06 |archive-date=2023-09-20 |archive-url=https://web.archive.org/web/20230920004902/https://www.reuters.com/technology/us-lawmaker-calls-ending-huawei-smic-exports-after-chip-breakthrough-2023-09-06/ |url-status=live }}

Processes

class="wikitable"

|+ Quarterly Wafer revenue by process node{{Cite web|title=SMIC Q3 2021 Earnings Release|url=https://smic.shwebspace.com/uploads/618cf5dc/2021%20Q3%20Earnings%20Release_ENG_Final.pdf|publisher=SMIC|access-date=2022-01-02|archive-date=2023-07-31|archive-url=https://web.archive.org/web/20230731155210/https://smic.shwebspace.com/uploads/618cf5dc/2021%20Q3%20Earnings%20Release_ENG_Final.pdf|url-status=live}}{{Cite web|title=SMIC Q3 2019 Earnings Release|url=https://smic.shwebspace.com/uploads/5dca7a67/2019%20Q3%20Earnings%20Release_ENG.pdf|publisher=SMIC|access-date=2022-01-02|archive-date=2023-07-31|archive-url=https://web.archive.org/web/20230731155211/https://smic.shwebspace.com/uploads/5dca7a67/2019%20Q3%20Earnings%20Release_ENG.pdf|url-status=live}}

NodeQ3 2021Q3 2020Q3 2019Q3 2018
FinFET/28 nm

| 18.2% || 14.6% || 4.3% || 7.1%

40/45 nm

| 13.9% || 17.2% || 18.5% || 18.7%

55/65 nm

| 28.5% || 25.8% || 29.3% || 21.0%

90 nm

| 3.1% || 3.4% || 1.3% || 1.4%

0.11/0.13 μm

| 5.4% || 4.4% || 6.6% || 8.7%

0.15/0.18 μm

| 27.9% || 31.2% || 35.8% || 39.5%

0.25/0.35 μm

| 3.0% || 3.4% || 4.2% || 3.6%

=14 nm=

On 14 November 2019, SMIC announced that volume production of 14 nm FinFET had begun.{{Cite web|url=https://www.anandtech.com/show/15105/smic-begins-volume-production-of-14-nm-finfet-chips-chinas-first-finfet-line|title=SMIC Begins Volume Production of 14 nm FinFET Chips: China's First FinFET Line|last=Shilov|first=Anton|website=www.anandtech.com|access-date=2019-11-16|archive-date=2019-11-15|archive-url=https://web.archive.org/web/20191115160920/https://www.anandtech.com/show/15105/smic-begins-volume-production-of-14-nm-finfet-chips-chinas-first-finfet-line|url-status=live}}

=N+1=

N+1 is the follow-on to SMIC's 14 nm process, and is targeted for inexpensive chips.{{Cite web |url=https://www.anandtech.com/show/15649/smic-details-its-n1-process-technology-7nm-performance-in-china |title=SMIC Details Its N+1 Process Technology: 7nm Performance in China |date=23 March 2020 |last=Shilov |first=Anton |website=AnandTech |access-date=10 June 2020 |archive-date=7 July 2020 |archive-url=https://web.archive.org/web/20200707145422/https://www.anandtech.com/show/15649/smic-details-its-n1-process-technology-7nm-performance-in-china |url-status=live }}

SMIC ordered an EUV step-and-scan system from ASML Holding for $120 million in 2018.{{Cite news|url=https://www.digitimes.com/news/a20190815PD200.html|title=SMIC to move FinFET process to volume production by year-end 2019|website=DIGITIMES|language=en|access-date=2019-08-18|archive-date=2019-08-18|archive-url=https://web.archive.org/web/20190818010910/https://www.digitimes.com/news/a20190815PD200.html|url-status=live}} The order was blocked after the US government pressured the Netherlands and ASML.{{Cite news|url=https://www.reuters.com/article/us-asml-holding-usa-china-insight-idUSKBN1Z50HN|title=Trump administration pressed Dutch hard to cancel China chip-equipment sale: sources|website=Reuters|date=6 January 2020|access-date=11 September 2022|archive-date=9 November 2022|archive-url=https://web.archive.org/web/20221109121457/https://www.reuters.com/article/us-asml-holding-usa-china-insight-idUSKBN1Z50HN|url-status=live}}

=N+2=

In 2021, SMIC started shipping 7 nm chips.{{Cite news|url=https://www.bloomberg.com/news/articles/2022-07-21/china-s-top-chipmaker-makes-big-tech-advances-despite-us-curbs|title=China's Top Chipmaker Achieves Breakthrough Despite US Curbs|website=Bloomberg News|date=21 July 2022|access-date=2022-07-21|archive-date=2023-01-09|archive-url=https://web.archive.org/web/20230109131542/https://www.bloomberg.com/news/articles/2022-07-21/china-s-top-chipmaker-makes-big-tech-advances-despite-us-curbs|url-status=live}}{{Cite web|url=https://www.asiafinancial.com/chinas-smic-beats-sanctions-to-make-7nm-chips-techinsights|title=China's SMIC Beats Sanctions to Make 7nm Chips – TechInsights|date=22 July 2022|access-date=5 September 2023|archive-date=5 September 2023|archive-url=https://web.archive.org/web/20230905064209/https://www.asiafinancial.com/chinas-smic-beats-sanctions-to-make-7nm-chips-techinsights|url-status=live}}

=N+2p/N+3=

In February 2024, the Financial Times reported that SMIC is on track to mass-produce logic chips equivalent in performance to the 5 nm process node later in 2024; additional reports speculated that the 5 nm chips will be manufactured via stockpiled ASML "deep ultra-violet" (DUV) immersion lithography machines. The new chips are expected to be produced at SMIC's new Shanghai production lines for lead customer HiSilicon (Huawei's chip designing arm). It is likely that SMIC's new 5 nm-node processors will be employed for AI-training and to power smartphones.{{Cite web |url=https://www.tomshardware.com/tech-industry/semiconductors/chinas-smic-foundry-on-track-to-produce-5nm-smartphone-chips-for-huawei-this-year-report |title=China's chipmaker SMIC on track to produce sanctions-busting 5nm processors for Huawei this year: Report |date=6 February 2024 |last=Shilov |first=Anton |website=tom'sHARDWARE.com |access-date=15 February 2024 |archive-date=1 October 2024 |archive-url=https://web.archive.org/web/20241001013154/https://www.tomshardware.com/tech-industry/semiconductors/chinas-smic-foundry-on-track-to-produce-5nm-smartphone-chips-for-huawei-this-year-report |url-status=live }}

According to a Chinese patent granted in late 2023 to a company working with Huawei Technologies, certain transistors and interconnects feature sizes seen on chips in the 5 nm-node can be obtained using DUV immersion machines and a technique called "self-aligned quadruple patterning" (SAQP).{{Cite web |url=https://news.bloomberglaw.com/tech-and-telecom-law/huawei-tests-brute-force-method-for-making-more-advanced-chips |title=Huawei Tests Brute-Force Method for Making More Advanced Chips |date=22 March 2024 |last1=Yuan |first1=Gao |last2=Wu |first2=Debby |website=BloombergLaw.com |access-date=28 March 2024 |archive-date=1 October 2024 |archive-url=https://web.archive.org/web/20241001013212/https://news.bloomberglaw.com/tech-and-telecom-law/huawei-tests-brute-force-method-for-making-more-advanced-chips |url-status=live }}

See also

References

{{Reflist}}