SMIC relies entirely on Western tools (US, Japanese, Dutch equipment including ASML) for chip fabrication, but is developing domestic alternatives by purchasing billions of dollars of Western equipment, running wafers through both Western and domestic tools in parallel, and reverse-engineering Western equipment to improve Chinese tool capabilities.

factualpending

Speaker

Unidentified Speaker — The Geopolitics of AI Infrastructure - Dylan Patel, SemiAna… [Zz4QjZsYWK0]

Evidence Quote

they'll buy billions of dollars of uh American, Japanese, and Dutch equipment, including ASML, but then they'll put it next to their domestic tool, and then they'll run uh wafers through both, and then they'll just like learn how to improve it.

Source

The Geopolitics of AI Infrastructure - Dylan Patel, SemiAnalysisAI Engineer
Created: 8/11/2026, 7:27:15 AM

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