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SMIC contractor denies report it has dismissed software team after failures, as China’s chip self-sufficiency efforts stumble

  • FA Software said it is still designing a computer-integrated manufacturing (CIM) system for SMIC’s new plant in Beijing
  • The report and denial come as China has struggled to advance its strategy of achieving greater self-sufficiency in semiconductor production

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SMIC contractor denies it has sacked software development team. Photo: Reuters

A contractor for Semiconductor Manufacturing International Corp (SMIC) has denied a report that it dismissed a task force for repeated failures to deliver a home-grown system for a new plant at China’s top chip maker.

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FA Software, a Shanghai-based software development company, said it is still designing a computer-integrated manufacturing (CIM) system for SMIC’s new plant in Beijing, shutting down a report by Chinese news portal Sina.com on Monday that a team was dismissed after failing to meet requirements.

The contractor said that its team of software developers are now working remotely on the project due to Covid-19 restrictions.

Sina.com reported that SMIC had rejected the proposed system after it found that the software used did not fit the 12-inch wafer production planned at the Beijing fab. The chip maker has given the contractor six months to come up with fresh investment and find a solution, according to the report.

Both SMIC and FA Software did not immediately reply to requests for comment by the Post. SMIC said in a brief statement to investor enquiries on Monday that all its software used in current production was operating normally.

The report and denial come as China has struggled to advance its strategy of achieving greater self-sufficiency in semiconductor production amid US trade sanctions and rising geopolitical tensions. SMIC is still reliant on the US giving the green light to American firms to export key equipment for its plants.

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