China's top chipmaker SMIC plans $7bn expansion despite tariff uncertainty

Co-CEO says auto chip demand now a key driver for growth amid localization push

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China's Semiconductor Manufacturing International Corp (SMIC) is tapping surging demand for chips from automakers. © Getty Images

CHENG TING-FANG and LAULY LI

TAIPEI -- China's top chipmaker, Semiconductor Manufacturing International Corp., says it will invest more than $7 billion this year to expand capacity and market share, even as its peers take a cautious stance due to the tariff war between Washington and Beijing.

The ambitious plan comes as automotive and industrial segments emerge as SMIC's key drivers for growth, boosted by China's rapidly expanding electric and new energy vehicle ecosystem and increasing demand for locally made chips.

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