{"id":12073,"date":"2023-11-10T08:07:15","date_gmt":"2023-11-10T08:07:15","guid":{"rendered":"https:\/\/infundpros.com\/business\/chinas-biggest-chipmaker-warns-geopolitics-is-stoking-global-glut\/"},"modified":"2023-11-10T08:07:15","modified_gmt":"2023-11-10T08:07:15","slug":"chinas-biggest-chipmaker-warns-geopolitics-is-stoking-global-glut","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=12073","title":{"rendered":"China\u2019s biggest chipmaker warns geopolitics is stoking global glut"},"content":{"rendered":"<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=30e61fb3-ac48-4ece-94fb-af0c3763d99c\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>China\u2019s largest chipmaker is boosting spending on plants and equipment this year while warning that geopolitical tensions and supply chain adjustments are stoking a global glut in semiconductors.<\/p>\n<p>Semiconductor Manufacturing International Corporation on Friday raised its capital expenditure budget for 2023 by 18 per cent to $7.5bn, citing the need for production expansion and new plants.<\/p>\n<p>SMIC said it had authorised equipment providers to ship in advance in order to secure supplies for its new factories in the face of \u201cincreasingly complex\u201d geopolitical tensions.<\/p>\n<p>Chinese companies have been struggling to navigate tightening export controls that the US has imposed on advanced chips and the equipment used to make them. At the same time, Washington has been supporting an expansion of chip production capabilities in the US and among its allies, as well as a reworking of the semiconductor supply chain.<\/p>\n<p>Zhao Haijun, SMIC\u2019s co- chief executive, said on Friday that \u201cgeopolitical factors\u201d were causing \u201cduplication of construction and supply chains\u201d. <\/p>\n<p>\u201cFrom a global perspective, there will be excess production capacity,\u201d he said, \u201cand it will take a lot of time to slowly digest the production that has been built hastily in recent years.\u201d<\/p>\n<p>Zhao defended SMIC\u2019s expansion in the face of such a glut, saying local production in some markets such as China and the US was still not enough to meet demand.<\/p>\n<p>\u201cChina\u2019s semiconductor demand will require a lot of local manufacturing capacity in the future\u2009.\u2009.\u2009.\u2009so our confidence in SMIC\u2019s production capacity is relatively high, and we believe that there will still be customer demand and orders in the future,\u201d he said.<\/p>\n<p>SMIC was placed on the US trade \u201centity\u201d blacklist in 2020, which meant US companies needed hard-to-obtain licences before selling their technology to the chipmaker. SMIC is also several generations behind Taiwan Semiconductor Manufacturing Company, Samsung and Intel in terms of its chip miniaturisation efforts.<\/p>\n<p>However, it has continued to play a significant role in China\u2019s efforts to build a self-sufficient chip supply chain with state backing.<\/p>\n<p>Zhao said political tensions had increased demand from Chinese clients and grown its business. In the July-September quarter, the proportion of its sales from China increased to 84 per cent from 75 per cent a year earlier.<\/p>\n<p>However, the continuing downturn in the broader semiconductor industry was reflected in a 15 per cent year-on-year drop in third-quarter revenues to $1.62bn. Net income plummeted by 80 per cent to $94mn, from $470mn in the same period last year.<\/p>\n<p>\u201cThe overall market has stabilised, [but we] haven\u2019t seen drivers and momentum for significant growth for the market. [We] still need to wait for the recovery of the global macro economy,\u201d said Zhao.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.ft.com\/content\/30e61fb3-ac48-4ece-94fb-af0c3763d99c\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. China\u2019s largest&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":{"0":"post-12073","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>China\u2019s biggest chipmaker warns geopolitics is stoking global glut | inFundPros<\/title>\n<meta name=\"description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.China\u2019s largest chipmaker is\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=12073\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"China\u2019s biggest chipmaker warns geopolitics is stoking global glut | inFundPros\" \/>\n<meta property=\"og:description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.China\u2019s largest chipmaker is\" \/>\n<meta property=\"og:url\" content=\"https:\/\/infundpros.com\/?p=12073\" \/>\n<meta property=\"og:site_name\" content=\"inFundPros\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-10T08:07:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-wall.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/infundpros.com\/?p=12073#article\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/?p=12073\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\"},\"headline\":\"China\u2019s biggest chipmaker warns geopolitics is stoking global glut\",\"datePublished\":\"2023-11-10T08:07:15+00:00\",\"dateModified\":\"2023-11-10T08:07:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/infundpros.com\/?p=12073\"},\"wordCount\":477,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/infundpros.com\/?p=12073#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/infundpros.com\/?p=12073\",\"url\":\"https:\/\/infundpros.com\/?p=12073\",\"name\":\"China\u2019s biggest chipmaker warns geopolitics is stoking global glut | inFundPros\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/#website\"},\"datePublished\":\"2023-11-10T08:07:15+00:00\",\"dateModified\":\"2023-11-10T08:07:15+00:00\",\"description\":\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.China\u2019s largest chipmaker is\",\"breadcrumb\":{\"@id\":\"https:\/\/infundpros.com\/?p=12073#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/infundpros.com\/?p=12073\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/infundpros.com\/?p=12073#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/infundpros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"China\u2019s biggest chipmaker warns geopolitics is stoking global glut\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/infundpros.com\/#website\",\"url\":\"https:\/\/infundpros.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/infundpros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/infundpros.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/infundpros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/infundpros.com\"],\"url\":\"https:\/\/infundpros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"China\u2019s biggest chipmaker warns geopolitics is stoking global glut | inFundPros","description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.China\u2019s largest chipmaker is","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/infundpros.com\/?p=12073","og_locale":"en_US","og_type":"article","og_title":"China\u2019s biggest chipmaker warns geopolitics is stoking global glut | inFundPros","og_description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.China\u2019s largest chipmaker is","og_url":"https:\/\/infundpros.com\/?p=12073","og_site_name":"inFundPros","article_published_time":"2023-11-10T08:07:15+00:00","og_image":[{"width":1920,"height":1200,"url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-wall.jpg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/infundpros.com\/?p=12073#article","isPartOf":{"@id":"https:\/\/infundpros.com\/?p=12073"},"author":{"name":"Press Room","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff"},"headline":"China\u2019s biggest chipmaker warns geopolitics is stoking global glut","datePublished":"2023-11-10T08:07:15+00:00","dateModified":"2023-11-10T08:07:15+00:00","mainEntityOfPage":{"@id":"https:\/\/infundpros.com\/?p=12073"},"wordCount":477,"commentCount":0,"publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"articleSection":["Business"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/infundpros.com\/?p=12073#respond"]}]},{"@type":"WebPage","@id":"https:\/\/infundpros.com\/?p=12073","url":"https:\/\/infundpros.com\/?p=12073","name":"China\u2019s biggest chipmaker warns geopolitics is stoking global glut | inFundPros","isPartOf":{"@id":"https:\/\/infundpros.com\/#website"},"datePublished":"2023-11-10T08:07:15+00:00","dateModified":"2023-11-10T08:07:15+00:00","description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.China\u2019s largest chipmaker is","breadcrumb":{"@id":"https:\/\/infundpros.com\/?p=12073#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/infundpros.com\/?p=12073"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/infundpros.com\/?p=12073#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/infundpros.com\/"},{"@type":"ListItem","position":2,"name":"China\u2019s biggest chipmaker warns geopolitics is stoking global glut"}]},{"@type":"WebSite","@id":"https:\/\/infundpros.com\/#website","url":"https:\/\/infundpros.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/infundpros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/infundpros.com\/#organization","name":"Fintech Advance","url":"https:\/\/infundpros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/person\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/infundpros.com"],"url":"https:\/\/infundpros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/12073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12073"}],"version-history":[{"count":0,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/12073\/revisions"}],"wp:attachment":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}