SMIC won the "bet" and TSMC never dreamed that the "sanctions" would come so quickly

Tech 2023-05-21 23:29:57 Source: Network

Jay Chou - Sunshine Homeboy_ 202319171511.mp33:40From the Science and Technology New Knowledge MuseumThis article is original, please do not plagiarize or move, violators will be held accountableThe global chip sales market is hot, and giants such as TSMC and SMIC are constantly adding to the chip manufacturing industry

Jay Chou - Sunshine Homeboy_ 202319171511.mp33:40

From the Science and Technology New Knowledge Museum

This article is original, please do not plagiarize or move, violators will be held accountable

The global chip sales market is hot, and giants such as TSMC and SMIC are constantly adding to the chip manufacturing industry. TSMC has put into production at 3nm and invested in building a factory in the United States to carry out a global layout.

SMIC International has made a "big bet" targeting mature 28nm technology, investing hundreds of billions in building factories on less advanced technologies. According to SMIC's revenue, SMIC has won the "bet", and TSMC never imagined that the "sanctions" would come so quickly.

Chips are an important foundation and core component in the development of modern technology, and almost all electronic devices require chips to control and process information. With the development of technology, the demand for chips is also increasing, especially in fields such as artificial intelligence, cloud computing, and big data, where more efficient, fast, and accurate processors are needed to support these applications.

According to different application fields, the process used for chips varies. Most consumer electronic devices use 7nm and 5nm high-end chip products, while industries such as smart homes and smart cars require mature 28nm chips.

With the rapid development of technology, many people believe that the more high-end chips are, the better. Domestic chips should fully sprint towards high-end manufacturing processes, catch up with and even surpass TSMC.

Not to mention whether we can obtain the corresponding resource supply for the high-end chip industry chain, it is not easy to obtain guarantees in terms of funding, technology, talent, and other aspects.

SMIC is currently unable to compete with TSMC for high-end chips, so SMIC has shifted its direction and made a "big bet" by seizing the demand of mature chip markets.

SMIC is increasing its production of 28nm chips and building 12 inch wafer production lines in Beijing, Shanghai, Shenzhen, and Tianjin. The Beijing factory is expected to enter mass production in the second half of this year, while the Shanghai factory completed the main cap by the end of last year. Factories in other regions are either still under construction or undergoing trial production.

If everything goes smoothly, SMIC may double its production capacity in the next few years. It is worth mentioning that SMIC International has the most advanced technology at 14nm, and the yield level has reached the industry level. Even compared to international giants, SMIC International's 14nm technology is not inferior.

Why did SMIC abandon expanding production to 14nm and invest most of its production capacity in 28nm? In fact, Core International is vigorously laying out the 28nm process because the demand for the 28nm process is more widespread in the market.

The 28nm process can be applied to various chip products, including consumer electronics, communication, computers, automobiles, and other fields. In addition, compared to more advanced process technology, the production cost of the 28nm process is lower, which can provide customers with more competitive prices.

Moreover, SMIC International also has strong technical strength and experience in the 28nm process. The company has independent intellectual property rights and patented technology in the 28nm process, which can provide customers with more customized and high-quality services.

So the layout of 28nm for SMIC International is not a hasty decision, but a carefully considered one. Based on SMIC's revenue, SMIC has won the "bet". Last year, SMIC achieved a revenue of 49.516 billion yuan, a year-on-year increase of 39%; The net profit was 12.133 billion yuan, a year-on-year increase of 13%.

The ability of SMIC to achieve such revenue returns is closely related to the layout of 28nm chips. The demand for 28nm has always remained strong, and with the decline in demand for high-end chips, chip manufacturers including TSMC have shifted their production capacity to 28nm.

This means that there is a great market opportunity for 28nm. Since giants such as TSMC are starting to pay attention to 28nm, how can SMIC maintain its competitive advantage? Firstly, SMIC needs to continue investing significant resources in technological research and development to continuously improve the performance and stability of the 28nm process.

At the same time, we need to cooperate with universities, research institutions, and other institutions to strengthen technological innovation and intellectual property protection. In addition, SMIC International needs to continuously search for ways to reduce 28nm process costs, improve production efficiency and profit margins. The goal of reducing costs can be achieved by improving the manufacturing process, optimizing equipment, increasing production capacity, and other means.

In terms of industrial chain ecology, SMIC International needs to actively cooperate with upstream and downstream enterprises, establish a sound ecosystem, and improve production efficiency and product quality. We can collaborate with design companies, packaging and testing companies, system manufacturers, etc. to form a complete industrial chain and improve market share and competitiveness.

SMIC International has become a major supplier of 28nm chips in China. Last year, more than 70% of SMIC's revenue came from Chinese Mainland.

Perhaps TSMC had never dreamed that the "sanctions" would come so quickly. TSMC has also expanded production by 28nm at its Nanjing factory in mainland China and actively participated in the mainland market layout. However, TSMC is constantly moving closer to the United States and is also cooperating with US actions to restrict Chinese enterprises. If it continues like this, TSMC will easily be led by the United States, and it will be difficult to get rid of its dependence on the United States.

SMIC has expanded its 28nm production capacity in mainland China and gained market share, which is equivalent to imposing sanctions on TSMC. In the future, it will not be easy for TSMC to make big money in mainland China.

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