Chinese chipmakers can profit from the AI boom without having the most advanced manufacturing processes, says the head of SMIC.

Chinese chip manufacturers are confident that sanctions will not stop the industry's growth

SMIC—the largest contract semiconductor manufacturer in China—has long been under U.S. sanctions and is denied access to high‑technology equipment needed for manufacturing chips with processes finer than 7 nm. Nevertheless, the company’s founder says this circumstance does not hinder Chinese manufacturers from developing amid the current AI boom.

Key points from Richard Chang

The *STAR Market Daily* cites Richard Chang, who notes that China’s semiconductor industry is strong because of specialized process technologies and production scale. In his view, the growing demand for artificial intelligence inevitably stimulates need across the entire spectrum of chips, not just the most advanced technologies.

- Data centers (DCs) require motherboards and power supplies—components that Chinese companies also produce.
- Currently less than 20 % of global chip volume is produced with the latest process nodes. The remaining over 80 % falls under mature and specialized technologies where Chinese manufacturers have already established themselves.

Advantages for China

Taiwanese competitors raise prices and shift to more advanced processes, thereby freeing a niche for Chinese producers. Since mid‑last year, China has intensified processing of 300‑mm silicon wafers using 90 nm and larger process nodes.

Demand for edge computing

The AI boom also drives demand for edge computing devices: smart gadgets, industrial equipment, automotive autopilot systems, and robots. Most chips for these tasks can be made with mature processes, allowing Chinese companies to profit even with limited access to foreign high‑technology equipment.

Thus, despite sanctions, China remains competitive in the specialized semiconductor segment and is ready to capitalize on growing demand for AI products.