China is fighting for technological independence from the west, and one of the key points is to have its own foundry that creates advanced manufacturing processes to bring to life all the silicons developed in the country, and according to the latest data, SMIC (Semiconductor Manufacturing International Corporation) could take third place next year behind only two giants like TSMC and Samsung Electronics.
Founded in 2000, it was not until July 17 that the company went public, and since then, shares have fluctuated seeking to set the company’s price. At the time of writing, each share has a value of 9.89 euros, thus giving it a market capitalization of 301.16 million euros, but it is expected that this value will skyrocket between now and next year, as we are facing China’s largest and most advanced smelter, which is investing heavily in R&D to advance above the industry average, which should outperform its direct rivals such as UMC and Gershon this year., which have a manufacturing share of 7.3 and 4.8%, respectively.
Although SMIC wants to keep the third place, at the moment of truth its presence in the market will be small, and that is that only TSMC has 51.5% of the manufacturing share.
SMIC is already established in the 14nm manufacturing process, and among its latest clients is Huawei. During the fourth quarter of this year, the smelter is expected to achieve small-scale production from the 7nm manufacturing process, while rumors indicate that the 5nm would arrive in 2024, so it stands to reason that SMIC has been ringing more than the account as it will become a major player in the industry soon. If its 7nm manufacturing process performs well, Huawei could find a great ally after the United States forced TSMC to stop supplying it with processors.