A blockbuster news for SMIC has made waves in the industry. It is reported that the US government has listed SMIC's 14nm process chips as a target for restricted exports, and this news is revealed by high-level sources within the US government.
First, we need to understand what a 14nm process chip is. Process chips refer to the manufacturing process of chips. At present, the world's mainstream chip manufacturing process is 7nm and 5nm, but SMIC has been in a state of scientific and technological follow-up, and the latest 14nm process chip has stayed in 2017, which makes SMIC face huge competitive pressure in the global chip market!
Next, we need to focus on why the US government is restricting exports. In fact, in the past few years, the Sino-US trade war has been escalating, especially in the field of 5G, ZTE and Huawei, two Chinese companies, were included in the entity list by the United States, thus suffering huge sanctions. As one of the leading chip manufacturers in China, SMIC has been subject to US supervision and review, and the 14nm chip that was included in the export restriction target this time is actually another suppression of SMIC by the US government.
Of course, SMIC is not a passive player in this process. Since the establishment of the company, SMIC has always adhered to the principles of independent technological innovation and legal compliance, invested a lot of resources in R&D and production, and strived to enhance its competitiveness in the global chip market. Despite the enormous challenges, SMIC maintains strong technological strength and leading manufacturing capabilities, which is one of the reasons why the U.S. government has taken export restrictions.
However, it is worth paying attention to what measures SMIC will take in the ongoing game between China and the United States? First of all, SMIC needs to strengthen investment and support in the local chip industry, further improve its own R&D and manufacturing level, and realize independent and controllable chip manufacturing. Second, SMIC can seek international cooperation to expand emerging markets, strengthen cooperation with internationally renowned enterprises, and realize technology and industry sharing. In addition, SMIC can actively introduce high-end talents, strengthen talent training and team building, and improve the core competitiveness of enterprises.
In general, SMIC's development history has not been easy. Especially in today's world, SMIC is facing many challenges due to the combination of technology, market and political factors, but at this critical moment, SMIC still needs to face up to the difficulties, strengthen its own strength, and promote the healthy development of the chip industry. At the same time, we also hope that all parties can respect science and market rules, and promote the globalization process of the chip industry in a fair and open environment.
The outbreak of the Sino-US trade war may make China face huge challenges in the field of electronics and semiconductors. Currently, one of China's most powerful chip makers, SMIC, is moving towards production capacity for 14-nanometer chip technology, which will be its second major advance.
However, there are still serious risks in SMIC's 14-nanometer chip program, as its supply chain is almost entirely in the hands of some companies on the U.S. sanctions list.
Recently, news has emerged within the US government that the US government is considering putting pressure on SMIC to ban it from using "American technology" to produce chips. Such a crackdown could result in SMIC's inability to use any products and services of companies that have been included in the U.S. government's "Entity List," including applications and data storage devices, analog devices, AC and DC regulators, microcontrollers, integrated circuits, and other equipment.
This inside news foreshadows the difficulties facing SMIC's 14nm chip technology. This is because SMIC needs to purchase critical technology and equipment from a variety of U.S. companies, and U.S. government regulation of its supply chain may make it difficult for SMIC to obtain the necessary technology and equipment. In addition, even if SMIC has access to the necessary technology and equipment, the U.S. crackdown may expose SMIC to more restrictions and pressures.
In fact, this is not the first time the U.S. government has launched an attack on SMIC. As early as last year, the US government added SMIC to the "Entity List" and imposed a series of sanctions and controls on it, restricting its use of US technology and equipment. These sanctions and controls have had a serious impact on SMIC's business and production, resulting in a deterioration in its financial position and a decline in production and shipments.
However, SMIC has no intention of stopping. According to the company's latest statement[1], SMIC will always adhere to the principle of operating in accordance with laws and regulations, as well as the ESG concept of "caring for people, caring for the environment, and caring for society", and work hand in hand with various stakeholders to jointly promote sustainable development of economic growth, environmental friendliness and social harmony to create a better future.
SMIC said that the company will continue to strengthen internal management and technological innovation, enhance its core competitiveness and brand value, and better respond to external challenges and threats. At the same time, the company will also seek diversified cooperation and development opportunities in the global chip market to maintain its market share and competitive advantage.
In addition, SMIC also calls on all stakeholders to jointly promote the sustainable development of the industry, establish a mutually beneficial and equal trade system, and promote the common development and prosperity of the global chip industry. This is also advocated by SMIC's ESG philosophy of "caring for people, caring for the environment, and caring for society".
Finally, SMIC's dilemma is not only a challenge for China's chip manufacturing industry, but also an important issue in the global chip industry and technology. The conflict and tension between China and the United States may affect the stability and security of the global chip market and supply chain, causing huge losses and setbacks to the chip business and production. Therefore, countries and regions need to strengthen cooperation and communication to establish a more stable, fair and open trade mechanism and promote the sustainable development and prosperity of the global chip industry.