on the crypto
The company said part of the proceeds will focus on developing 14nm chips, which will be used for cryptocurrency mining. This decision comes just two months after the company announced a partnership with cryptocurrency producer Canaan Creative.
The two companies plan to develop a mining machine for an unspecified cryptocurrency with a relatively small market capitalization rather than for bitcoin, due to current technical limitations.
SMIC's chip production capacity is still lagging behind Bitmain's main chip supplier, namely Taiwan Semiconductor Manufacturing Company (TSMC), as well as Samsung, which works closely with Whatsminer and MicroBT.
Samsung, for example, announced plans to mass-produce 2020nm chips in the first quarter of 8, while TSMC is developing 5nm chips. Founded in mainland China in 2000, SMIC may be one of China's best hopes to advance its technologies applied to chip production and become less dependent on manufacturers who have deeper connections with the United States government, given the growing tension between the two countries.
Strong support from the Chinese government could put SMIC in the right conditions to reach out to its competitors. The company has received significant financial losses since the United States introduced new restrictions that could limit chip makers such as TSMC and Samsung in producing chips for the Chinese technology industry Huawei.
The SSE Sci-Tech Innovation Board where SMIC wants to launch its IPO was born in Shanghai last June. The new market is described as part of China's capital market reform and supports technology companies in line with national strategies.
SMIC also received a investment $ 2,2 billion in May from the National Integrated Circuit Industry Investment Fund II and the Shanghai Integrated Circuit Industry Investment Fund II, which are two of the largest national investment funds.
The government fund came when the U.S. Department of Commerce expanded a restriction known as a Foreign Direct Product Rule which makes it more difficult for China to import chips from Samsung and TSMC. The United States also stopped supplying chips to Huawei in May, and started a new production facility on its territory.
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