Huawei Technologies was not the only Chinese company to be affected by US sanctions. At the end of September, the US authorities ranked SMIC as one of those companies that are henceforth restricted in access to hardware and software created using American technology. Samsung can now take over some of the SMIC customers from China.
The laws of the capitalist market imply that the problems of one company turn into opportunities for others, the situation with sanctions against SMIC was no exception. Foreign clients were the first to refuse SMIC services, among which the American corporation Qualcomm was mentioned. Shares of SMIC’s competitors went up in price, and TSMC’s 28-nm production lines ended up being fully loaded, since the exclusion of one of the market players inevitably redistributed the load between the rest.
Now DigiTimes reports that Chinese developers of semiconductor components, who previously placed orders for the release of their own products through SMIC, turned to Samsung Electronics for help, which is just hatching ambitious business expansion plans in this area. It is reported that Samsung will provide services for the production of components with technological norms of 14 nm and higher for Chinese customers. For SMIC, the 14nm process technology was considered advanced, it demonstrated its intentions to master not only 12nm technology, for which it attracted a record amount of capital in its history, but also aimed at a 7nm process technology in the prospects of the current five-year plan, but without using the so-called EUV- lithography.
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