Except that SMIC has historically been such a laggard on technology that a key strategy is to feed off the leftovers of TSMC, UMC and GlobalFoundries Inc. Founded with money and land from the Chinese government, SMIC was behind on technology from day one. Its most advanced technology last year – making chips at 28-nanometer geometries(1) – was first rolled out by TSMC eight years ago. To do that they’ve got no choice but to look to overseas foundries such as TSMC, UMC and Globalfoundries. A NYSE delisting for SMIC was the obvious next step, and there may be more to come.

Source: Washington Post May 27, 2019 05:48 UTC