US-China tech war: Top Chinese chip maker SMIC to invest record US$5 billion in capacity expansion after profits doubled in 2021

China’s biggest semiconductor foundry has set aside a record amount for capacity expansion in 2022, after its profits more than doubled in 2021 thanks to strong demand for chips.

Semiconductor Manufacturing International Corp (SMIC) has earmarked US$5 billion for capital expenditure this year, up from US$4.5 billion in 2021. The investment could boost its monthly capacity by 130,000 to 150,000 8-inch equivalent wafers, the company said.