Semiconductor Manufacturing International Corp (0981) shares surged more than 10 percent after it was reported to be planning to double its manufacturing capacity of 7-nanometer chips next year to reduce China’s reliance on US giant Nvidia.
The 7-nm chips are often used for mobile computing applications, data centers, and high-performance computing components. Taiwan Semiconductor Manufacturing Company started the mass production of chips using its 7-nm technology in 2018, and SMIC started shipping its 7-nm chips in 2022.
China's chipmakers have sought to triple the country's output of artificial intelligence chips in 2026, rushing to reduce dependence on Nvidia, the Financial Times reported on Wednesday.
Huawei aims to begin production at a plant dedicated to making AI chips by the end of the year, with two more facilities set to launch in 2026, the newspaper said, citing people familiar with the matter.
The plants are designed to specifically support Huawei, but their ownership remains unclear. Huawei told the FT that it did not have plans for its own plants.
The combined output from the three plants could potentially surpass the current production capacity of similar lines at China's top chipmaker SMIC, the FT said.
SMIC plans to next year double manufacturing capacity for 7-nm chips, for which Huawei is its largest customer, the report said.
On Thursday, SMIC’s shares jumped 10.76 percent in Hong Kong and 17.45 percent in Shanghai.
STAFF REPORTER and REUTERS
