China's SMIC has placed substantial orders for raw materials, equivalent to around two years' worth of supply, with Taiwanese partners.
China’s Semiconductor Manufacturing International Corporation has reportedly placed substantial orders for raw materials, equivalent to around two years’ worth of supply, with Taiwanese partners. This move follows the recent shipment of Huawei’s HiSilicon Kirin 9000S system-on-chip for the Mate 60 smartphone, a move that could potentially violate U.S. sanctions.
The U.S. sanctions on Huawei disrupted its chip supplies, forcing the company to explore alternative solutions. Enter SMIC, which, until recently, lagged behind global competitors. However, the launch of the Huawei Mate 60 Pro, featuring the 7nm 5G-enabled Kirin 9000S chipset, marked a significant leap forward for both companies. This advance not only enabled 5G services in the U.S. but also showcased SMIC’s prowess in the highly efficient 7nm node process.
SMIC’s approach mirrors that of several Chinese chipmakers, who have been aggressively stockpiling chip-making equipment from various international sources, anticipating potential disruptions due to geopolitical tensions. This proactive stance highlights the industry’s resilience and adaptability in the face of challenging global scenarios.
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