Commentary: Sanctions reshaped China’s foundry sector — just not in the way markets expected
China’s foundry sector is charting a different course as the global semiconductor market remains focused on AI GPUs, the 2nm process node, and advanced packaging. Led by Semiconductor Manufacturing International (SMIC) and Hua Hong Semiconductor, domestic Chinese foundries have not stalled under US sanctions; instead, they are accelerating efforts to build a China-specific foundry ecosystem amid the AI boom, recovering demand for mature nodes, and a push for supply-chain self-reliance.