SMIC: SMIC earnings signal potential price war in mature-node chip market

China's rapid expansion in mature-node wafer foundries is reshaping the global semiconductor landscape and intensifying competition for Taiwanese second-tier players. In a market estimated at roughly US$56.3 billion, Chinese foundries-such as Hua Hong Semiconductor and SMIC-are aggressively cutting prices and rapidly expanding capacity. This surge has not only prompted the US government to initiate a Section 301 investigation but has also served as a wake-up call across the industry.