Chip maker SMIC’s founder says ‘optimistic’ China can catch up with US in semiconductors

Richard Chang Rugin, also the former chief executive at SMIC, said persistent research and development as well as investment in new raw materials would enable China to compete

Semiconductor Manufacturing International Corp, the mainland’s biggest contract chip maker, raised US$6.5 billion from its Shanghai share sale in July

Reading Time:2 minutes

China is expected to close the gap with the United States in advanced semiconductor technology amid a protracted tech and trade war between the world’s two largest economies. Photo: Shutterstock

Published: 5:50pm, 5 Aug 2020Updated: 4:12am, 3 Feb 2021

The founder of Semiconductor Manufacturing International Corp (SMIC) said on Tuesday he was “optimistic” China could catch up with the United States in the next generation of chips, but that US efforts to contain the country’s technology sector could not be taken “lightly”.

Richard Chang Rugin, also the former chief executive of SMIC, told a live-streamed forum that persistent research and development as well as investment in new raw materials would enable China to compete, according to an official transcript on Wednesday.

The comments come as Washington and Beijing continue to spar over telecommunications equipment maker Huawei Technologies. In May, the US Department of Commerce imposed new rules restricting Huawei’s acquisition of advanced chips made with American technology. That has brought new urgency to China’s calls to improve its domestic chip industry.

“I am optimistic and believe we can catch up,” Chang said in a rare appearance at the forum, organised by China Securities.

Semiconductor Manufacturing International Corp founder Richard Chang Rugin, centre, toasts the listing of the Shanghai-based contract chip maker at the Hong Kong stock exchange on March 18, 2004. Photo: SCMP

While China’s talent base was a “weakness” in the short-term, Chang said the country had made “great progress” in manufacturing raw materials and remained a leader in superfast 5G mobile technology.

“If China maintains its leadership in 5G technology, it can remain far ahead in wireless connectivity, artificial intelligence and cloud computing, because China already is strong in hi-tech applications,” he said.