Semiconductor SMIC Founder Says It’s A “Misconception” That Semiconductor Success Is “Only Achieved When 3nm Or 2nm Is Reached” In New Interview Omar Sohail • at EDT Add on Google Founder of China's largest semiconductor firm says that targeting a specific niche carries more importance TSMC’s success in the semiconductor industry is primarily due to the manufacturer’s unyielding focus on its advanced processes and ability to achieve stability in record time, allowing the company to form long-term business relationships with trillion-dollar firms like Apple and NVIDIA. While being able to mass produce 3nm and 2nm wafers at a mammoth scale is certainly a tremendous feat, SMIC founder Richard Chang does not consider these accomplishments as a benchmark for success and calls it a misconception in the latest interview. Instead, he believes that there’s another attribute that semiconductor companies must acquire. Related Story Even China’s Largest Chip Company, SMIC, Isn’t Safe From DRAM Shortages, but It Is Urging Customers Not to Scale Back Orders or Risk Losing Capacity AccessSMIC’s founder says that “excellence in a specific niche” would greatly contribute to the semiconductor industry The AI boom is largely concentrated on the 2nm and 3nm lithography, but the niche sub-markets have been neglected for quite a while and are likely the new target of SMIC going forward. Richard says that advanced manufacturing processes account for less than 20 percent of the entire market, with more than 80 percent of demand coming from mature processes. “Many people think that competition in the semiconductor industry is a contest of advanced processes, and that success is only achieved when 3nm or 2nm is reached. This is actually a misconception.” The founder of China’s biggest semiconductor manufacturer also says that niche markets that have been monopolized by overseas companies are the ideal target for domestic manufacturers, and with a little effort, these chipmaking firms can achieve incredible breakthroughs. However, Richard believes prioritizing tasks is necessary, starting with solving a specific problem. “We don't need to do everything. We need to prioritize. For example, we can achieve excellence in a specific niche and solve a bottleneck problem, which would be a huge contribution to the industry. Compared to the homogeneous competition of crowding into popular tracks, focusing on cultivating the missing links and niche markets in the domestic semiconductor industry is a more pragmatic and valuable way to break through.” Given the accelerated growth of the AI chip industry, Richard has also commented that there’s immense focus on the cloud computing sector, whereas distributed AI has largely been ignored. Looking at this major gap, demand for scenario-based hardware has yet to be met. AI-related startups, which are currently focused on taking on the big guys by burning through millions in funds, are recommended by the SMIC founder to avoid this trajectory. Instead, a different path must be followed, one that involves scenario-based applications. China has largely struggled against players like TSMC and Samsung due to SMIC’s lack of access to advanced EUV machinery that is mandatory to produce 5nm wafers and below. By sticking to older DUV equipment, SMIC continues to be limited to the 7nm process, but looking at how Richard is viewing the sub-markets as an opportunity, perhaps the manufacturer’s mature nodes could serve a purpose in different markets. News Source: MyDrivers About the : Omar Sohail is a and analyst for 's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology. Follow on Google to get more of our news coverage in your feeds. Further Reading China’s SMIC Is Expanding Advanced Packaging Efforts by Establishing a Research Center to Explore New Ways to Scale Performance Beyond Moore’s Law Huawei’s Kirin 9030 Chip Is Testing The Limits Of DUV-Based Multi-Patterning Lithography Morgan Stanley Guts SMIC’s Huawei AI GPU Revenue 50% Due To Abysmal Yields NVIDIA Beats Chinese Government’s Attempts To Shun Its AI Chips As Domestic Firms Thirst For Its GPUs, Says Broker Research Read all on SMIC Founder Says It’s A “Misconception” That Semiconductor Success Is “Only Achieved When 3nm Or 2nm Is Reached” In New Interview
