China's SMIC Becomes World's Third-Largest Chip Foundry

SMIC's rise is driven by strong domestic demand and strategic pivots despite US sanctions.

SMIC now holds 6% of global foundry market share, surpassing GlobalFoundries.
The company generated 82% of its Q1 revenue from mainland China.
US sanctions have limited SMIC's access to advanced technology since 2020.
The Biden administration plans to increase tariffs on Chinese semiconductors to 50% by 2025.
SMIC's growth reflects Beijing's efforts to reduce dependence on foreign technology.