📊Executive Summary

SMIC's supply partners have received U.S. approval to sell equipment for mature node semiconductor manufacturing, specifically for 28nm and 14nm processes. This development allows SMIC to enhance its production capacity, potentially alleviating the global semiconductor shortage impacting the automotive sector. The approval comes after SMIC was placed on the U.S. Entity List, limiting its access to advanced technologies. The ability to source older fabrication equipment could enable SMIC to meet rising demand in the automotive industry, which relies on mature components. This situation presents procurement teams with opportunities and risks as SMIC seeks to expand its manufacturing capabilities....