Chip manufacturer SMIC to venture into crypto mining hardware
- Semiconductor Manufacturing International Corporation is looking to raise $2.8 billion in capital.
- The firm plans to use the capital to start a production line offering 14nm chips used in crypto miners.
Semiconductor Manufacturing International Corporation (SMIC) is planning to raise $2.8 billion in capital through a listing on Shanghai’s tech-focused STAR Market. SMIC is China’s largest semiconductor fabrication firm.
The company plans to use the capital to start a production line offering 14nm chips - the standard for processors used in smartphones and crypto miners. SMIC is also joining forces with Canaan to manufacture a crypto miner, details of which remain undisclosed.
In a bid to offer China’s electronics sector a viable alternative to Taiwan Semiconductor Manufacturing Company (TSMC), SMIC appears to be stepping up its production capabilities. TSMC has cut off Chinese tech multinational Huawei as a result of US sanctions. Although TSMC is a Taiwanese firm, most of its manufacturing equipment is made in the US, meaning that it needs to comply with US sanctions and export controls. Guangzhou-based GF Securities has published research showing that US firms control 50% of the core process equipment market for Chinese fabs.
Unlike Huawei, the crypto mining sector is not a target for US tech sanctions. However, broad sanctions against Chinese companies could curb their ability to get critical Application Specific Integrated Circuit (ASICs) required for miners.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
