SMIC and TSMC respond to the semiconductor shortage

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asiatimes.com, Sept. 17, 2021 – 

Semiconductor Manufacturing International Corp (SMIC), China's largest integrated circuits foundry, has announced plans to build a new $8.9 billion factory in Shanghai to produce semiconductors at the 28-nanometer node.

That level of technology is suitable for automotive ICs and other semiconductor products that are currently in short supply. It is several generations behind the leading edge, which is now at 5-nanometer and moving to 3-nanometer at Taiwan Semiconductor Manufacturing Company (TSMC).

The 28-nanometer node is not targeted by American economic sanctions, which are aimed at preventing China from acquiring production technologies for 10-nanometer and smaller design rules.

SMIC's announcement on September 3 followed TSMC's decision to spend $2.8 billion to expand 28-nanometer production at its factory in Nanjing. This project was approved by the Taiwanese government in July.

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