SMIC's board of science and technology is listed as the new king of A-share semiconductors. Many investors believe that through differences in market valuations, SMIC may be expected to challenge TSMC, the world's most valuable chip maker, but there are views that Sino-US relations are tense. Now, listing has become a stumbling block for SMIC's inability to catch up with TSMC.

Reuters quoted industry insiders as saying that the growing tension between China and the United States has been destined to widen the gap between SMIC and TSMC. The one-stop listing may expose SMIC's technology gap to the eyes of A-share investors.

As the number one chip maker in mainland China, SMIC has received strong support from the mainland government and hopes to catch up with the leading group in the semiconductor field. However, the report quoted experts as saying that SMIC's technology is difficult to compete with TSMC. It is impossible to dig the orders of top customers for at least ten years. At present, China and the United States are still experiencing tensions. SMIC's reliance on American equipment also makes them possible. Unable to manufacture chips for Huawei and other enterprises.

S&P Global estimates that SMIC’s capital expenditure in 2020 may more than double to $4.7 billion annually, but this is still only 33% of TSMC. Bernstein Research pointed out that SMIC needs capital to compete with TSMC. Although listing is an option, investors may see whether the company is able to create shareholders for the company after seeing large expenditures and unable to dig orders from strong opponents. Worry about value.

SMIC's prospectus said that the funds raised will be about 6.6 billion US dollars to build a chip factory using 14-nanometer and 7-nanometer technology to manufacture chips, but these investments are quite huge, compared with other manufacturers such as GF and UMC have given up 7nm technology focuses on its niche market, but SMIC, as a mainland indicator company, bears the pressure of technological breakthroughs. Bernstein Research also said that the US hand is also on SMIC's throat. If there is no US equipment, SMIC is likely to stay at 14 nanometers and cannot upgrade the process.