# Wafer Fabrication

SMIC’s High-Stakes Pivot: Chasing Advanced Packaging as the Next Frontier in China’s Silicon Shield

SMIC reported strong 2025 growth but faces margin pressure from a massive $37 billion expansion drive and a missed AI storage boom. The company’s strategic pivot toward advanced packaging signals a new phase in China's pursuit of semiconductor self-reliance, focusing on system-level performance to bypass lithography limitations.