SMIC : The Pride of China's Foundry Industry ranked 5th in the World!!!

 


[Posting: 2025.04.15]
SMIC (Semiconductor Manufacturing International Corporation), a symbol of China’s semiconductor industry, holds a 5% market share. It is known to possess manufacturing processes that closely resemble those of TSMC, to the extent that they are often considered near-copies. SMIC primarily develops processes by recruiting technology engineers from other companies and adopting a simplified approach that allows them to ramp up and mass-produce at remarkable speed without overcomplicating development strategies.

Backed by generous subsidies from the Chinese government, SMIC has gained strong pricing power in the wafer market and displays technical capabilities comparable to TSMC in many respects. Although the company faces serious challenges in sub-7nm EUV (Extreme Ultraviolet) processes due to U.S.-China trade restrictions, it still manages to showcase national pride by producing Huawei’s application processors (AP). As a leading figure in China’s semiconductor rise, SMIC remains a dominant player in the legacy process sector, alongside rising Chinese foundries such as HHGrace, Nexchip, and Cansemi.


🇨🇳 SMIC – China's Leading Foundry

📌 SMIC 2024 Analytical Report:

Revenues, Technology Roadmap, Legacy Process Portfolio, FAB Overview, and Salaries Fully Covered

Semiconductor Manufacturing International Corporation (SMIC) is the largest semiconductor foundry in China. Despite U.S. technology sanctions, it continues to expand production capacity and internalize technology, securing an increasingly vital role in the global semiconductor supply chain. It holds a competitive edge particularly in legacy processes, and is also internally developing advanced nodes such as 7nm–14nm.

📊 SMIC 2024 Performance Summary:

  • Annual Revenue (2024): $8.03 billion (YoY +27%)

  • Net Profit: $493 million (YoY -45.4%)

  • Gross Margin: 18%

  • EBITDA: $4.38 billion

Q4 Highlights:

  • Revenue: $2.207 billion

  • Net Profit: $108 million

  • Gross Margin: 22.6%

📎 Source: SCMP

🧭 SMIC Technology Roadmap (2024–2025)

NodeStatusNotes
28nmMass productionWidely used in automotive, IoT, and DDI
14nmMass production in progressFor 5G modules, low-power applications
7nmPartial mass production successUsed in Huawei Kirin 9000S, based on DUV
5nmTargeting 2025Complex multi-patterning using DUV, high cost

❗ Note: SMIC uses DUV-based multi-patterning due to lack of access to EUV equipment.

🧩 SMIC Legacy Process Portfolio

🔁 Key Legacy Nodes and Applications:

NodeMajor Applications
90nmSmart cards, RFID, display controllers
65nmCIS, DDI, power management ICs
55nmAnalog & Mixed Signal
40nmMCU, IoT, communication chipsets
28nmAutomotive semiconductors, baseband chips

🔧 Legacy Process Highlights:

  • High yield and production stability

  • Precision patterning with DUV, no EUV required

  • Optimized for cost-effective product segments

  • Over 50% of SMIC’s revenue comes from legacy nodes

📎 Source: TrendForce 2025 Legacy Node Report

🏗️ SMIC FAB Overview

📍 Major FAB Locations:

RegionDescription
ShanghaiHQ, primary production lines
BeijingExpanding new FAB in 2025 ($6.86B investment)
ShenzhenBackend and testing facility
TianjinMixed production (8-inch & 12-inch)

⚙️ Capacity and Utilization:

  • Monthly Capacity: Approx. 948,000 wafers

  • Average Utilization Rate: 85.6%

  • Annual Shipments: 8.02 million wafers

  • Average Selling Price (ASP): $927

💼 SMIC Employee Salaries

PositionAverage Annual Salary (USD)
Office Administrators~$52,000
R&D Engineers$80,000 ~ $120,000
Senior Managers$207,000+

📎 Source: Glassdoor – SMIC

🧾 SMIC Strategic Summary

CategoryDetails
Technology PositionFocus on profitable legacy nodes (≤28nm), advancing into advanced nodes (≥14nm)
Customer DiversificationExpanding beyond Huawei to automotive, IoT, and industrial sectors
Regional FAB DiversificationMulti-location production (Shanghai, Beijing, Shenzhen, Tianjin)
Government SupportStrategic capital and talent infrastructure from the Chinese government

✅ Conclusion: SMIC Remains a Legacy Process Powerhouse

Despite U.S. export controls, SMIC has built a robust long-term survival strategy by securing stable profits from legacy process manufacturing and gradually incorporating advanced nodes. With the global demand for automotive, industrial, and IoT semiconductors surging, SMIC’s capabilities in the 90nm to 28nm range offer strong competitive advantages.




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