SMIC has received US licenses to import equipment for use in mature processes, according to ijiwei.com.
The report said that according to market rumors, the US licenses were issued in batches, with a one-time license for the equipment needed for 40-50,000 wafer capacity.
The report cited an unnamed industry source as saying that the news is true, adding that "to some extent, China and the US need to find a balance at the technology level, and it is a matter of time to open up mature processes to SMIC."
The source said in terms of mature processes, TSMC and others may be allowed to OEM for Chinese chip makers. In terms of advanced processes, perhaps Chinese companies will still be restricted.
The US Department of Commerce previously included SMIC in the "entity list", in principle, the United States will prohibit the export of equipment and materials (such as EUV lithography) to SMIC and related entities used in the 10nm process and below.
Considering the rapid development of China's chip design company ecosystem, CIMB believes that China's mature process foundry business has a broader market potential, but the mature process also depends on the progress of the US license approval and SMIC's progress in supply chain diversification.
SMIC rose nearly 9 percent in Hong Kong on Thursday on the news.
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