A emblem hangs on the constructing of the Beijing branch of Semiconductor Manufacturing International Company (SMIC) on December 4, 2020 in Beijing, China.
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China’s most significant chipmaker SMIC is now the world’s third-greatest foundry in terms of profits in the first quarter, in accordance to Counterpoint Study.
State-backed SMIC, or Semiconductor Production Worldwide Co., held a current market share of 6% in the 1st quarter— up from 5% past 12 months, the report confirmed. It overtook GlobalFoundries and Taiwan’s United Microelectronics Company.
This spots SMIC at the rear of only Taiwan Semiconductor Production Firm and South Korea’s Samsung Foundry which held 62% and 13% of sector share in the to start with quarter respectively.
“SMIC’s quarterly benefits surpassed industry anticipations, and the firm secured the No. 3 position in foundry income marketplace share in Q1 2024 for the to start with time, as need recovery starts in China, like CIS, PMIC, IoT, and DDIC apps,” showed the Counterpoint Exploration report released Wednesday.
Chips made by SMIC are identified in automobiles, smartphones, personal computers, IoT systems and additional.
SMIC noted first-quarter revenue was $1.75 billion, up 19.7% from a 12 months earlier, as customers stocked up on chips. Extra than 80% of its income in the quarter have been derived from shoppers in China, the organization reported in its earnings report.
In the 2nd quarter, the Chinese company expects income to enhance by 5% to 7% from the initially quarter on strong desire.
China consumes almost 50% of the world’s semiconductors as it is the most important assembly current market for consumer products, according to facts from tech consultancy Omdia.
SMIC is found as vital to Beijing’s hopes of decreasing dependence on international technological know-how in its domestic semiconductor field as the U.S. continues to control China’s tech electricity. To increase domestic manufacturing, Beijing has pumped billions of yuan in subsidies into its chip companies.
SMIC has been the goal of U.S. sanctions since 2020 exactly where American corporations will be demanded to implement for a license right before they can sell to SMIC, limiting its means to receive certain U.S. technologies.
It has also been unable to get hold of the intense ultraviolet lithography devices — which only Dutch firm ASML is able of generating. Without EUV devices, SMIC cannot create substantial-tech semiconductors on a large scale at reduce prices.
In a blow to U.S. sanctions, a breakdown of Chinese tech big Huawei’s Mate 60 Professional smartphone launched very last year revealed that it runs on a 7-nanometer chip created by SMIC. The smartphone also seems to assist 5G connectivity despite U.S. tries to minimize Huawei from key systems such as 5G chips.
However, SMIC still lags behind TSMC and Samsung Electronics, analysts reported.
TSMC and Samsung started mass manufacturing 7-nanometer chips in 2018 and presently makes 3-nanometer chips — the lesser the nanometer sizing, the extra state-of-the-art and efficient the chip.
