Commentary: What's next for troubled SMIC?

Mark LaPedus, EE Times 
(11/10/2009 9:01 PM EST)

SAN JOSE, Calif. -- In just one day alone, China's Semiconductor Manufacturing International Corp. (SMIC) suffered three major setbacks. On Tuesday (Nov. 10), it lost a big patent suit, its chief executive, and, in some respects, its independence.

What's next? Clearly, change is in the wind at silicon foundry vendor SMIC (Shanghai). Going forward, SMIC's newly-hired CEO must take swift action and restore customer confidence, bolster its bottom line and possibility change its overall strategy, according to analysts.

Observers believe SMIC will accelerate its 45-nm process R&D efforts, but it will possibly place its focus on fewer markets going forward. It is also likely that the company will end its reckless practice of building and managing fabs for others on a whim.

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