With AI saturating TSMC factories, Chinese foundries step in as alternatives (xataka.com)

• AI chip demand overwhelms TSMC, causing order spillover to Chinese fabs.
• SMIC revenue grows 11.5% YoY, forecasts 14-16% Q2 growth.
• Chinese foundries focus on mature nodes, capturing global volume.

"TSMC's capacity is strained by AI chip demand, leading some foreign clients to shift orders to Chinese foundries like SMIC. SMIC reported strong Q1 2026 revenue growth and expects further expansion. Chinese foundries focus on mature nodes (80% of market) rather than leading-edge 2nm race, benefiting from TSMC's reallocation of mature node capacity. This trend boosts China's semiconductor exports and reduces dependency on foreign chips."