SMIC raises billions but still far from being new TSMC

SMIC is gearing up for major investment as the Chinese foundry raised billions to boost its capabilities. The company filed for a listing in Shanghai to raise 20 billion yuan ($2.8 billion) and the firm already got $2.2 billion funding from state investors in May.

China’s largest contract chipmaker, Semiconductor Manufacturing International Corporation (SMIC), has filed for a listing in Shanghai that will raise 20 billion yuan ($2.8 billion).

The move comes as the company looks to bolster investment in its technology amid the escalating trade tensions between the U.S. and China, which could force SMIC to take on more production.

SMIC is China's largest and most advanced foundry. However, the company is significantly behind industry leader TSMC. TechNode reports that even though SMIC is currently doing 14nm production, these wafers have a defect rate of about 70 percent. Nomura Holdings, a Japanese investing firm, believes SMIC will need one to two years just to master 14nm.

DigiTimes chimes in saying SMIC is in no position to challenge TSMC or Samsung in the next five years.