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China's chip breakthrough poses strategic dilemma

How much time and money will SMIC sink into producing its new semiconductor at scale?

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SMIC has been open about its quest for 7nm technology.

PHOTO: REUTERS

Kathrin Hille

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(FINANCIAL TIMES) - A breakthrough by China's largest chipmaker revealed last month triggered a gasp of surprise among observers outside the industry. But the move by Semiconductor Manufacturing International Corporation (SMIC) to start shipping advanced "7 nanometre" semiconductors had only been a matter of time.
The more interesting question now is how much time and money the company is willing to sink into producing them at scale using a method their international rivals have abandoned for a more efficient one.
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