Chinese chipmaker Semiconductor Manufacturing International Corp (SMIC) rose to third place in the global foundry market in Q1 from fifth a year earlier, as its results surpassed market expectations, Counterpoint Research reported.

The research outfit pegged the state-owned company’s market share at 6 per cent compared with 5 per cent in Q1 2023, benefitting from a recovery in demand in China. It moved ahead of GlobalFoundries and UMC.

The chipmaker has already forecast continued growth in the current quarter, aided by a rise in inventory restocking, which Counterpoint Research noted potentially indicates mid-teens growth compared with a prior mid-single-digit growth guidance in its earnings call on 9 May.

Its Q1 revenue grew 19.9 per cent year-on-year to $1.8 billion. It boosted capex 77.7 per cent to $2.2 billion.

The overall global foundry market grew 5 per cent according to Counterpoint Research, with Taiwan Semiconductor Manufacturing Co at top with a 62 per cent share, followed by Samsung on 13 per cent.

Meanwhile, China’s chipmakers are taking new measures to line up local suppliers of key components and materials as they feel the sting from US export controls and support the government’s push for self-reliance in critical technologies.

Nikkei Asia reported SMIC is encouraging customers to identify and approve potential local vendors, while ChangXin Memory Technologies unveiled a campaign aimed at replacing foreign suppliers with domestic ones.