China's most important chipmaker SMIC could be a big winner from the global semiconductor shortage

www.cnbc.com, Mar. 01, 2021 – 

• CSMIC is China's largest contract semiconductor manufacturer. But its technology is far behind rivals such as Taiwan's TSMC and South Korea's Samsung.
• Currently, many companies such as those in the automobile industry, are facing a global shortage of chip supply.
• But many of these industries don't require the most cutting-edge chips. SMIC, which is working with older technology, could step in to fill the demand.

GUANGZHOU, China – Chinese chipmaker SMIC could be a beneficiary of the global chip shortage, according to one analyst, giving the firm a respite from some of the negative effects of U.S. sanctions.

The chip shortage started as demand surged for consumer electronics as countries locked down to fight the coronavirus pandemic. That demand for products requiring advanced semiconductors has led to shortages in other industries like automobiles.

Chips are made by companies known as foundries which do the actual manufacturing. The two leading ones are Taiwan's TSMC as well as South Korean technology giant Samsung. That means there are very few companies able to make leading edge semiconductors.

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