Financial Center/Comprehensive Report
SMIC CEO Liang Mengsong’s ambition to catch up with TSMC was slapped in the face because of poor profits in the third quarter of this year (picture/reproduced from SMIC’s official website and Baidu Encyclopedia)
China’s Huawei’s new flagship phone Mate 60 Pro is equipped with SMIC’s 7-nanometer chip, which was criticized by a US think tank. SMIC set up a shell company to defraud the equipment to advance 7-nanometer, but due to low yield and too high cost, in the third quarter Profits plummeted 78%. Foreign media pointed out that SMIC has never been a cutting-edge wafer foundry, and the avalanche of profits is bad news for China’s ambition to establish a local semiconductor industry. The third quarter report card is so bad, it is also a slap in the face to TSMC’s traitor and current SMIC CEO Liang Mengsong’s ambition to catch up with TSMC.
According to a report by “Tom’s Hardware”, a well-known American technology website, SMIC’s third-quarter financial report profit plummeted by nearly 80% compared with last year. As China’s largest wafer foundry, SMIC represents the forefront of China’s semiconductor manufacturing industry, “but it is obvious that the progress is not smooth.”
The report said that if compared with TSMC, SMIC’s profit decline is more significant, not to mention that in terms of technology, SMIC is obviously lagging behind TSMC. Because SMIC has just entered the 7nm process and TSMC is developing the upcoming 2nm process, the avalanche of profitability may hinder SMIC’s efforts to catch up with TSMC.
The report also said that SMIC has never been a cutting-edge foundry. It launched the 28nm process in 2015, and TSMC has entered 16nm in the same year. When SMIC launched the 14nm process in 2019, TSMC had been providing the 7nm process for about a year.
Although SMIC claims to have the ability to progress to 7nm and 5nm, by then, foundries such as TSMC, Intel and Samsung are likely to have processes below 2nm. If China hopes to reach the level of companies like Huida or AMD and produce chips as fast as TSMC or Samsung, then Chinese foundries such as SMIC will need to advance more cutting-edge processes.
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2023-11-12 02:13:31
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