Semiconductor Manufacturing International Corporation

Semiconductor Manufacturing International Corporation
Company type	Public
Industry	Semiconductor foundry
Founded	April 3, 2000; 26 years ago
Headquarters	Shanghai, China
Area served	Worldwide
Key people	Zhao Haijun (Co-CEO), Mong Song Liang (Co-CEO), Zixue Zhou (Chairman)
Products	Integrated circuit (IC) production services, wafer fabrication
Owner	Datang Telecom Group, China Integrated Circuit Industry Investment Fund
Website	www.smics.com

Semiconductor Manufacturing International Corporation (SMIC) is a publicly traded Chinese semiconductor foundry company with partial state ownership, recognized as the largest contract chip manufacturer on the Chinese mainland.

Based in Shanghai and legally registered in the Cayman Islands, SMIC runs wafer fabrication facilities throughout mainland China and maintains offices in the United States, Italy, Japan, and Taiwan, along with a representative office located in Hong Kong. The company offers integrated circuit (IC) production services covering process technologies from 350 nm down to 7 nm. According to the Financial Times, SMIC intends to commence 5 nm node IC manufacturing services by 2024.

Among its principal shareholders are the state-owned telecommunications entity Datang Telecom Group and the China Integrated Circuit Industry Investment Fund. Its significant clients include Huawei, Qualcomm, Broadcom, and Texas Instruments. Additionally, SMIC holds a substantial stake in and supplies to Brite Semiconductor. In reaction to U.S. sanctions targeting China’s semiconductor sector during the early 2020s, SMIC expanded operations through partnerships with China's national semiconductor investment fund.

By 2024, SMIC ranks as the third-largest global contract semiconductor manufacturer.

History

Founded on April 3, 2000, SMIC’s headquarters are situated in Shanghai. It was incorporated as a limited liability company in the Cayman Islands. Early on, SMIC established a wholly owned fabrication facility in Shanghai, acquired a Motorola plant located in Tianjin, and initiated construction of another plant in Beijing. The company also undertook projects in Chengdu and Wuhan where local governments financed capital expenditures, enabling SMIC to operate fabs without significant upfront investments.

In September 2003, SMIC secured $630 million from investors such as Walden International, Oak Investment Partners, Temasek, and Vertex Israel.

On June 23, 2015, a joint venture named SMIC Advanced Technology Research & Development (Shanghai) Corporation was formed by Huawei, Qualcomm Global Trading Pte. Ltd., IMEC International, and SMIC.

On October 14, 2016, Ningbo Semiconductor International Corporation was created through collaboration among China IC Capital (SMIC’s investment vehicle), Ningbo Senson Electronics Technology Co., and Beijing Integrated Circuit Design and Testing Fund with an initial capital injection of RMB355 million (~$52.8 million). SMIC holds a majority stake of 66.76%. NSI specializes in analog and specialty semiconductor technologies applied in smart home devices, industrial uses, automotive electronics, radio communications, as well as augmented reality (AR), virtual reality (VR), and mixed reality sectors.

In 2018, SMIC reported revenues of $3.6 billion alongside a gross profit of $747 million and net profit totaling $149 million. Research and development expenditures reached approximately $550 million, representing 16% of sales. On March 9, 2018, SMIC partnered with the Shaoxing municipal government to establish United Nova Technology. By May 2018, construction began on a Shaoxing manufacturing facility incorporating China’s inaugural 14-nanometer production capabilities. The firm planned a 20% capacity expansion investment starting early 2019.

As of June 2020, Zhao Haijun and Mong Song Liang serve as co-CEOs while Zixue Zhou holds the chairman position. Reports from May 2019 revealed strategic differences between the co-CEOs.

Due to low trading volumes and high administrative expenses amid U.S. trade sanctions impacting Huawei, SMIC voluntarily withdrew from the New York Stock Exchange on May 24, 2019.

In 2019, Qualcomm, Huawei, and IMEC continued as minority investors in SMIC’s research and development division.

Supporting China’s Made in China 2025 strategy, both the China Integrated Circuit Industry Investment Fund and Shanghai Integrated Circuit Industry Investment Fund invested $2 billion in May 2020 acquiring ownership stakes of 23.08% and 11.54%, respectively. Subsequently, in July 2020, SMIC raised ¥46.28 billion ($6.62 billion) via an initial public offering on the Shanghai Stock Exchange’s STAR Market.

On July 21, 2022, despite facing U.S. export limitations, SMIC announced its successful development of 7 nm technology—a milestone achieved within two years.

Litigation with TSMC

SMIC was sued by TSMC over accusations of intellectual property theft. The initial dispute concluded in 2005 with a settlement amounting to $175 million; however, a subsequent legal phase commenced in 2006. In September 2009, during the liability trial held in Oakland, California, SMIC was found responsible for 61 out of 65 claims. Eventually, both parties reached an agreement that resolved all ongoing legal conflicts.

Taiwan

In June 2025, Taiwan placed SMIC on its export control list.

United States

In September 2020, the United States Department of Commerce classified SMIC as a military end-user, mandating that American firms obtain licenses before supplying products to it. This action prompted criticism from China's Foreign Ministry. By October 2020, SMIC announced that U.S. export restrictions required certain suppliers to secure licenses prior to delivering American-made equipment.

In December 2020, the United States Department of Defense designated SMIC as an entity "owned or controlled" by the People's Liberation Army, thereby banning U.S. investments under Executive Order 13959. That same month, SMIC was added to the Bureau of Industry and Security's Entity List, limiting its access to critical U.S. technologies.

On 6 September 2023, Huawei unveiled the Mate 60 smartphone featuring SMIC’s Kirin 9000s chip, which was produced using advanced 7-nanometer technology. Despite existing sanctions, SMIC managed to adapt available machinery to accomplish this feat. Industry experts observed that this breakthrough might accelerate growth within China’s semiconductor sector. Following this launch, U.S. Congressman Mike Gallagher called on the Commerce Department to cease all technology exports to both Huawei and SMIC, citing potential breaches of export regulations linked to the chip’s incorporation of U.S. technology.

Processes

Quarterly wafer revenue distribution by process technology
Process Node	Q3 2021	Q3 2020	Q3 2019	Q3 2018
FinFET/28 nm	18.2%	14.6%	4.3%	7.1%
40/45 nm	13.9%	17.2%	18.5%	18.7%
55/65 nm	28.5%	25.8%	29.3%	21.0%
90 nm	3.1%	3.4%	1.3%	1.4%
0.11/0.13 μm	5.4%	4.4%	6.6%	8.7%
0.15/0.18 μm	27.9%	31.2%	35.8%	39.5%
0.25/0.35 μm	3.0%	3.4%	4.2%	3.6%

14 nm

On November 14, 2019, SMIC commenced mass production of its 14 nm FinFET technology, becoming the first Chinese company to operate a FinFET fabrication line.

N+1

N+1 represents the follow-up generation to SMIC’s 14 nm process, focusing on economically efficient chip manufacturing.

In 2018, SMIC placed an order worth $120 million for an EUV step-and-scan system from ASML Holding. However, due to pressure from the U.S. government on both the Netherlands and ASML, the sale was blocked, restricting SMIC’s access to cutting-edge lithography tools.

N+2

Despite U.S.-imposed export limitations, SMIC began delivering 7 nm chips in 2021, marking a notable technological advancement.

N+2p/N+3

By February 2024, reports indicated that SMIC was progressing toward large-scale production of logic chips at the 5 nm node within that year. These chips are anticipated to be manufactured using existing stockpiles of ASML "deep ultra-violet" (DUV) immersion lithography equipment at newly established production facilities in Shanghai, primarily serving lead customer HiSilicon, Huawei's chip design division. The targeted applications for these processors include AI training workloads and smartphone integration.

A Chinese patent granted in late 2023 to a Huawei-affiliated entity revealed that achieving feature sizes at the 5 nm scale is feasible with DUV immersion technology combined with "self-aligned quadruple patterning" (SAQP). This development highlights SMIC’s strategic approach to advancing semiconductor fabrication despite constraints on accessing advanced technologies.

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