- U.S. sanctions on SMIC have negatively impacted the stock amid increasing pressure from the Trump administration to block equipment sold to the company.
- Although a headwind, demand from China to become self reliant in making its chips is so great it will overshadow these short-term limitations.
- Whether these sanctions will last into the Biden administration is unknown, but SMIC's n+1 process will offer performance close to TSMC's at 7nm.
For further details see:
Semiconductor Manufacturing International: Still My Top China Stock Pick Despite Short-Term Headwinds