Forget to post the article 3 days ago, so forgive me BUT the message is loud and clear, SMIC will continue its expansion plan and its growth potential even on todays trying time is immense.
In addition the expansion in Beijing, Shenzhen and others will be using domestic equipment except for SMIC SN2 FAB in Shanghai, here I think ASML latest DUVL NXT 2050i is being or had been installed.
SMIC to keep long-term capacity expansion plans unchanged
Staff reporter, Shanghai; Willis Ke, DIGITIMES AsiaFriday 19 August 2022
Credit: AFP
China's top foundry Semiconductor Manufacturing International Corp (SMIC) has decided not to change its long-term capacity expansion plans despite volatile market environments, sparking market concerns, according to industry sources.
With the rapidly spreading price falls and order cuts triggered by a sharp reversal in demand for consumer applications, many global foundries and IDMs are re-assessing whether to reduce or slow down their planned capacity expansions, the sources said.
But SMIC co-CEO Zhao Haijun has said at a recent international investors conference that the company will not alter its long-term capacity expansion plans and will maintain a consistent investment density in the years ahead,
reasoning that SMIC is optimistic that domestic foundry business prospects will remain bright as localized chips production will continue to gain momentum.
Major PC chips vendors such as Intel and AMD have successively released pessimistic performance reports and business projections, warning that the IC industry may face a broader and more severe demand slowdown than expected. In response, Zhao said in the first half of 2022, the IC industry was affected by a double cycle overlap, generating panic and uncertainty in the markets, and some supply chain segments even suffered a quick business freeze.
Nevertheless, Zhao stressed the regionalization trend will remain unchanged worldwide, and SMIC remains optimistic about its business growth over the medium and long term, bolstered by the ever-growing localized chips production momentum in China.
Also braving market headwinds, China's top-2 foundry Hua Hong Semiconductor is proceeding with regular capacity expansions as well. Its president and executive director Tang Junjun has said that additional capacity at its 12-inch wafer fab in Wuxi, Jiangsu province will be commercialized in early 2023 when the plant's monthly capacity will increase to 95,000 wafers from 65,000. He also noted the company plans to build more fabs in the future, and the actual construction progress will hinge on delivery lead times for related equipment.
