Analysis of the Development Strategy of SMIC

Abstract

As the most advanced and largest chip foundry in mainland China, SMICs development strategy is of great research value and reference significance. This paper first gives a brief introduction of SMIC, including the company's development history and the current problems and challenges it faces. Then, it analyzes the strategic environment of SMIC and analyzes its external environment (PEST analysis) in terms of political, economic, policy and technological environment. Next, SMICs internal resources and capabilities were analyzed in terms of finance, human resources, technology and R&D capabilities, production capacity, and customer and market resources. Finally, a SWOT analysis was conducted based on the above, and strategic recommendations were made by summarizing SMICs strengths, weaknesses, opportunities and threats. SMICs current scale of development and operations are good, so it should plan more for future growth. The political, economic and social environment in mainland China has created positive support for SMICs development. SMIC should take this opportunity to secure its current market share while striving for more mainland markets, seeking external cooperation and, most importantly, making technological breakthroughs as soon as possible to catch up with the industry leaders.