SMIC Founder Says Semiconductor Success Not Only About Reaching 3nm or 2nm

SMIC founder Richard Chang has challenged the prevailing view that semiconductor success depends solely on reaching the most advanced process nodes. In a recent interview, he said that focusing exclusively on 3nm or 2nm is a misconception.

Mature processes dominate chip demand

Chang noted that advanced processes account for less than 20 percent of the total market. More than 80 percent of demand comes from mature process technologies. He argued that companies should prioritize niche markets and solve specific bottleneck problems instead of engaging in homogeneous competition.

Chang also pointed out that distributed AI and scenario-based hardware are neglected areas with unmet demand. He emphasized that the industry does not need to do everything. Prioritizing and achieving excellence in a specific niche can be a huge contribution.

The SMIC founder's comments come as the Chinese semiconductor industry faces restrictions on accessing cutting-edge equipment. His remarks suggest a strategic shift toward leveraging mature processes and addressing local market gaps rather than chasing the latest node sizes.