Yes, the United States may have imposed restrictions on China that limit its access to AI chip technology. However, That does not seem to stop the Asian giantand less to its main semiconductor manufacturer, SMIC (Semiconductor Manufacturing International Corp).
According to South China Morning Postthe company achieved quarterly revenue of $2.17 billion in the third quarter. This represents an increase of 34% year-on-year. According to the media, this is due to internal demand from the so-called “traditional second generation chips“.
Advances in seven-nanometer chips, China’s secret weapon
The company has positioned itself as the undisputed leader in the Chinese market for the production of seven-nanometer chips. Thanks to this, its production capacity reached 844,250 eight-inch wafers per month, with a utilization rate of 90.4%, the highest figure in the last six quarters.
Besides, 86.6% of SMIC’s revenue comes from within China. This reflects the change in strategy in the company, as it has focused on the domestic market after the sanctions imposed by the United States, betting on both clients and national suppliers.
With SMIC, China has managed to take an important step in the manufacturing of advanced chips. Making use of multi-pattern technology, it made the Kirin 9,000 chipset for Huawei’s Mate 60 phones. According to the Chinese media, this has raised alarm bells in Washington, while beginning to generate speculation about the effectiveness of its restrictions on the Asian country.
The war for semiconductors
In 2020, The United States imposed restrictions that impacted key companies such as Huawei and SMIC. These sanctions focused on blocking China’s access to advanced technologies, citing national security concerns. In particular, the veto prohibited American companies from selling equipment and semiconductors to Huawei without a special license, affecting its ability to obtain advanced chips needed for its devices.
In December of that year, Washington included SMIC on the commercial blacklistwhich complicated its access to American technology crucial for the manufacturing of next-generation semiconductors. Although China has worked to develop its industry independently, Washington’s restrictions have slowed its progress in advanced technologies.
Now, with Donald Trump’s victory in the presidential elections, it is expected that the magnate will not relax these controls during his second term, but will even intensify them. However, Wang Jiping, vice president of the research firm IDC Chinais optimistic and rules out the possibility of some type of cooperation between the countries.
