August 08, 2021

Communist China’s largest foundry for integrated circuits, Semiconductor Manufacturing International Corp (SMIC), is to build new chip fabrication plants in Beijing and Shenzhen. The plant in Shenzhen is expected to start commercial operations next year, while the Beijing facility will go online in 2024. The Shanghai-based semiconductor giant has budgeted US$4.3 billion in total capital expenditure this year.

SMIC co-chief executive Zhao Haijun, in a conference call with analysts on Friday, admitted the existence of “uncontrollable factors.” Besides logistics disruption caused by the Covid-19 pandemic, he complained about delays in US approval of export licenses to SMIC’s equipment suppliers. The US government added SMIC to Washington’s trade blacklist in December last year.

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Edited by:【Himalaya London Club UK】