The recent bans restrict US companies from exporting any new tech to SMIC without obtaining license from the authorities
Chipmakers based in South Korea might benefit from the recent restrictions imposed on China’s SMIC said a report published in the Business Insider. The restrictions, imposed by USA, might help South Korea-based semiconductor companies in grabbing new orders from global clients.
The department of commerce (USA) has recently added SMIC to its list of banned chipmakers. SMIC, in a press release dated 28 September 2020, had mentioned that it had not received any official confirmation about the bans by USA.
The recent bans restrict US companies from exporting any new tech to SMIC without obtaining license from the authorities.
China’s loss might be South Korea’s gain
Now, a report published by the Yonhap News Agency points out that the China’s loss might be South Korea’s gain, and companies like Samsung semiconductors and DB HiTek might be able to gain new orders from global clients.
TrendForce estimates that Taiwanese foundries currently lead the foundry market by occupying a 65 per cent market share, followed by Korea (16 per cent), and China (six per cent). Occupying about four per cent of the global foundry market share, SMIC is ranked first in China and fifth in the world, while being the only Chinese foundry that possesses a relatively clear roadmap for 14nm and more advanced process technologies.
Given SMIC’s leadership position in the Chinese foundry industry, the latest sanction, which poses a significantly risk of cutting off SMIC’s upstream supply chain of semiconductor equipment and raw materials, will likely cause considerable damage to the foundry’s R&D of advanced process technologies and China’s efforts at semiconductor independence.
“Assuming Chinese foundries can source from their domestic equipment suppliers for the 90nm or more mature processes, the export restrictions will primarily impact SMIC’s 12-inch fab expansion plans,” read TrendForce’s Report.
Samsung, as per another report by TrendForce, was the world’s second largest contract chipmaker as of the third quarter 2020. Taiwan Semiconductor Manufacturing was the first as per the list.
