The founder of China’s largest contract chipmaker, Richard Chang, has called for the semiconductor industry to prioritize pragmatic breakthroughs in mature and specialty chip nodes instead of pursuing the highly challenging 2nm process, highlighting supply chain security and domestic capability gaps as critical concerns.
- Focus on mature and specialty chips, not just advanced nodes like 2nm
- Supply chain security depends on pragmatic domestic semiconductor development
- Shortage of skilled engineers is a key challenge for China’s chip industry
What happened
Richard Chang Rugin, a semiconductor industry veteran and founder of SMIC, has publicly urged China's chip sector to shift focus from pursuing the latest process node breakthroughs—such as 2nm fabrication—towards achieving practical advancements in mature and specialty chip technologies. He highlights the significant demand for these established processes, which make up the vast majority of global semiconductor consumption.
Chang’s remarks, published ahead of a key meeting between Chinese President Xi Jinping and US President Donald Trump, also warn of a critical shortage of skilled engineers needed to maintain stable manufacturing yields and product quality. His viewpoint challenges the prevailing industry narrative that equates success primarily with the most advanced process nodes.
Why it matters
Chang’s perspective underscores a strategic pivot for China’s semiconductor self-sufficiency ambitions, especially given ongoing US export controls limiting access to advanced chipmaking equipment. By focusing on niche markets and mature chips, China could mitigate supply chain risks and build foundational capabilities that support broader technological independence.
The call also reflects broader challenges faced by the country’s semiconductor ecosystem, including talent shortages and a manufacturing bottleneck that could hinder scaling of cutting-edge processes. Investing in distributed edge AI and key components like 3D silicon capacitors offers a more attainable and valuable growth path in the near to medium term.
What to watch next
Stakeholders should monitor how China’s semiconductor policy and investments evolve in response to these pragmatic recommendations. Whether domestic startups and manufacturers adopt a strategy that prioritizes mature node innovations and specialized components will shape China’s competitive positioning amid global technology restrictions.
Upcoming dialogues between China and the US, especially those focused on trade and technology access, will be critical in determining how much support and resources China can allocate to both advanced and mature chip production capabilities. Talent cultivation and workforce development efforts will also be a key area to watch, given Chang’s warning about the engineer shortage.