How One Visionary Shaped China’s Chip Revolution Amid US Sanctions

Experts warn that 5G and artificial intelligence will replace labor‑cost advantages, creating a revolutionary disruption that will decide which nation becomes the world’s factory over the next century.

Huawei, hailed as a national pride, leads global 5G development, but the United States has launched aggressive bans, prohibiting major chip suppliers from selling to Huawei.

Although Huawei’s chip design capabilities are world‑leading, domestic factories cannot yet manufacture its designs.

Initially, hopes rested on longtime partner TSMC, but the company succumbed to US pressure, announced a $12 billion investment in the United States, and halted support for Huawei.

Consequently, China’s own semiconductor manufacturer SMIC became Huawei’s last hope, yet its technology lags behind industry leaders like Samsung and TSMC, limiting it to mid‑ and low‑end chips.

Despite sustained US pressure on SMIC, the firm persevered, providing a lifeline for Huawei’s chip needs.

Recent breakthroughs include SMIC’s second‑generation FinEFT process entering trial production, promising the ability to fabricate more advanced chips soon.

At the heart of this story is Zhang Rujing, celebrated as the “father of Chinese chips.” After graduating from National Taiwan University, he spent two decades at Texas Instruments, overseeing the construction and operation of ten semiconductor fabs worldwide and earning the nickname “the third most influential figure in Chinese semiconductor history.”

In the 1980s, China recognized a widening gap with foreign semiconductor technology and launched a national drive to catch up, despite export restrictions imposed by the Paris Coordination Committee.

Motivated by his father’s question—“You build factories around the world; why not build one in the mainland?”—Zhang retired early from Texas Instruments in 1997 and helped establish Chinese ventures, eventually leading to the founding of SMIC.

SMIC broke ground in Shanghai’s Zhangjiang district on 24 August 2000, completed its first 8‑inch fab in 13 months—setting a world record for speed—and rapidly expanded to multiple 8‑inch and 12‑inch plants across Shanghai, Beijing, and Tianjin, later listing in New York and Hong Kong.

Zhang’s leadership is credited with creating a Chinese chip miracle, but TSMC later sued SMIC, forcing a $200 million cash settlement, an 8 % equity stake, and a 2 % warrant, while also demanding Zhang’s resignation and a three‑year non‑competition clause.

Choosing national interest over personal legacy, Zhang left SMIC, continued to champion China’s semiconductor cause, and in 2018 founded the country’s first CIDM‑model semiconductor company, XinEn Semiconductor, at age 70.

His story illustrates the profound impact of visionary R&D management on a nation’s technological sovereignty.