SMIC was fortunate that the US sanctioned it and other Chinese companies to make do with what they could pull together sans high end chips. Mature node chips represents 80% of the semiconductor market so SMIC went where the majority of the market was while it kept chipping away at increasing its ability to produce high end chips. Today, SMIC is capable of 7 and 5nm node chips and it appears they are trying to develop 3nm chips using DUV technologies. SMEE is rising in lithography and if they succeed, SMIC will be a primary beneficiary. In the meantime, there are literally hundreds of companies of various sizes designing chips of various capabilities that add to SMIC's customer base. Media reports suggest that the semiconductor sector with grow on average 6 to 8% per year, which means the semiconductor sector will double in 12 to 9 years.
The much vaunted American Chip Alliance completely overlooked the importance of legacy chips, which forced China to produce these chips on its own. Legacy chips make up about 80% of the market, and now China accounts for over 30% of these chips.
They do not follow stock market logic. They are state sponsored... stock price are not even in the top concerns of the goverment... if they lose money, they do in the name of strategic interest of the goverment that is trying to be sovereing in this field. If they make money they reinvest on themselves instead of buying back stocks or producing dividends. Their profit margins are super low... If they get it done with 0.001% proffit it was worth it because it paid itself. This is why chinese stock prices will never ever rival western ones, they are not playing the same game. They are not driven solely by profit.
President Xi has publicly announced not encouraging stock matket because it is just bubbles, and can be controlled by foreign countries, and you can see the China stock market indexes have litttle growth.
SMIC was fortunate that the US sanctioned it and other Chinese companies to make do with what they could pull together sans high end chips. Mature node chips represents 80% of the semiconductor market so SMIC went where the majority of the market was while it kept chipping away at increasing its ability to produce high end chips. Today, SMIC is capable of 7 and 5nm node chips and it appears they are trying to develop 3nm chips using DUV technologies. SMEE is rising in lithography and if they succeed, SMIC will be a primary beneficiary. In the meantime, there are literally hundreds of companies of various sizes designing chips of various capabilities that add to SMIC's customer base. Media reports suggest that the semiconductor sector with grow on average 6 to 8% per year, which means the semiconductor sector will double in 12 to 9 years.
The much vaunted American Chip Alliance completely overlooked the importance of legacy chips, which forced China to produce these chips on its own.
Legacy chips make up about 80% of the market, and now China accounts for over 30% of these chips.
Why is SMIC stock prices are still very low?
The bubble is in the dow....1000s x overpriced
They do not follow stock market logic. They are state sponsored... stock price are not even in the top concerns of the goverment... if they lose money, they do in the name of strategic interest of the goverment that is trying to be sovereing in this field.
If they make money they reinvest on themselves instead of buying back stocks or producing dividends. Their profit margins are super low... If they get it done with 0.001% proffit it was worth it because it paid itself. This is why chinese stock prices will never ever rival western ones, they are not playing the same game. They are not driven solely by profit.
@@marcelo55869 thanks for your reply, SMIC stock prices do fluctuate between HKD 14 to 24. So it is quite interesting to invest. What do you think? 🙏
President Xi has publicly announced not encouraging stock matket because it is just bubbles, and can be controlled by foreign countries, and you can see the China stock market indexes have litttle growth.
👍🇨🇳🌏☮️🙂❗️
You wont believe how many trillions UAS the west australia n india are losing every month