SMIC has started a chip war with TSMC, whether it can threaten TSMC's technology monopoly position.

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Beijing is moving swiftly to rely on domestic source and then cut dependence on the West for crucial components like chips. SMIC is the best hope for China for gaining clout in advanced chips used in devices from smartphones to base stations. SMIC's 28nm colossus won't get China closer to self-sufficiency in stuff it buys from Intel and AMD but will help in other ways. Top chip makers in China have been speeding up efforts to reduce their use of US semiconductor equipment since last year. To that, the country's top contract chipmaker, Semiconductor Manufacturing International Corporation, better known as SMIC, is planning to build a new fabrication facility that will become China's largest such facility used for products other than memory.
There is not doubt that it could be a major step towards easing the pressure on the semiconductor supply chain. Given how Taiwan Semiconductor Manufacturing Company (TSMC) is arguably the most important company in the world with a foundry producing cutting-edge chips for top tech firms, SMIC's new plant plan could intend to challenge TSMC as a global leader and ride on the industry-wide rush to expand its capacity.