China’s SMIC Surges in Global Foundry Market Share Ranking

China’s largest chipmaker, Semiconductor Manufacturing International Co., or SMIC, became the world’s third-largest foundry in terms of revenue in the first quarter, according to Counterpoint Research, trailing Taiwan Semiconductor Manufacturing Company ( TSM ) and South Korea’s Samsung Foundry.

TSMC took the top spot with 62% of market share during the quarter, and Samsung was in second place at 13%. SMIC and Taiwan’s United Microelectronics Corporation ( UMC ) both had a 6% share.

SMIC Overtakes GlobalFoundries in Market Share

SMIC, which is backed by Beijing, was in fifth place last quarter with a 5% market share, and has now overtaken GlobalFoundries ( GFS ), which has slipped to fifth place from third with a 5% share. Beijing has been trying to boost its domestic tech sector by enforcing new restrictions on government purchases of chips and operating systems by foreign companies.

The Trump administration added SMIC to an export blacklist in 2020, restricting the company’s access to high-end technology over its alleged links to the Chinese military.

Earlier this month, the Biden administration escalated tariffs on a wide range of Chinese imports , and said the tariff rate on semiconductors will increase to 50% by 2025 from 25%. The White House has also doled out billions of dollars under the CHIPS and Science Act to expand the manufacturing of advanced chips at home.

GlobalFoundries shares were down 7.8% to $50.91 as of 11:52 a.m. ET Thursday, while TSMC’s American depositary receipts (ADRs ) were up 1.9% to $159.04. Both are beneficiaries of the CHIPS Act.