The world is currently dealing with a deadly semiconductor shortage. The gestation period between placing the orders and receiving them has increased to an all-time high of 21 weeks, as per Susquehanna Financial Group. The impact of this shortage is felt across industries, especially the consumer electronics and automobile sectors. But China’s would-be national semiconductor leader, Semiconductor Manufacturing International Corp (SMIC) is set to fill in the void by doubling its production, reports Observer Research Foundation (ORF).
According to the website, SMIC is on track with the construction of new chip fabrication plants in different cities, despite lingering risks of US restrictions that may prevent it from acquiring production equipment. Earlier this month, SMIC has announced its plans to establish a new facility in the Lin-Gang Special area, which is a part of Shanghai’s free trade zone. This foundry worth $8.87 billion, has planned a production capacity of 100,000 12-inch wafers per month. Earlier this March, the company announced its plan to work along with the Shenzhen government to invest in a $2.35 billion project to produce 28 nanometer and above ICs to produce 40,000 12-inch wafers per month.
SMIC also disclosed its plan to partner with Beijing Economic-Technological Development Area Management Committee (BDAC) to develop facilities to produce 12-in wafers, in 2020. All put together, the output of the foundry will double by 2025.
