Ibm 2nm ChipSource: IBM

What you need to know

  • SMIC is a Chinese semiconductor manufacturer.
  • It's committed to building the largest wafer fabrication facility in China.
  • The project will cost just under $9 billion.

Countries are in an all-out race to be technologically self-sufficient, a race that has only intensified under the pressure of global semiconductor shortages. Many nations remain strained for supplies of tech products. With production pipelines of everything from the best graphics cards to the best Windows laptops delayed due to chip shortages, countries such as China are working hard to build up independence when it comes to satisfying their citizens' needs.

In response to the growth in the industry and the need for more chips than ever before, Chinese semiconductor company SMIC plans to open the biggest wafer fabrication facility in the country, which will cost $8.87 billion (via Tom's Hardware). It's a joint venture between SMIC and the China (Shanghai) Pilot Free Trade Zone Lin-Gang Special Area Administration ("Lin-Gang FTZ Administration," for short).

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This fab will be able to produce 100,000 12-inch wafers every month, with a focus on nodes 28 nanometers and above.

As has been previously documented, SMIC is on the way up as China bolsters its efforts to outpace the U.S. in the chipmaking war. The country's goal is to shed its ties to the U.S. so that it cannot be handicapped by sanctions, among other reasons.

But the U.S. is fighting to stay in the game as well, with its government dedicating funds to spur semiconductor activity. Many countries are employing similar methods to ensure the semiconductor shortage is resolved as quickly as possible. The only question is which countries will be dominant and integral to the world's overall supply when the shortages are over.

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