The Semiconductor Manufacturing International Corporation (SMIC) is going to build a huge chip factory in Shenzhen, China. China wants to become less dependent on other countries for the supply of potato chips, world-wide shortage of. The $ 2.35 billion project is co-financed by the Chinese government. SMIC, the largest Chinese chip manufacturer, warned Thursday that the shortage of chips could increase this year and next year. Chinese companies could suffer greatly if the country does not increase the production of semiconductors. Production in the new plant should begin by 2022. SMIC was blacklisted by the US government at the end of December. According to Washington, the chip manufacturer has close ties to the Chinese army. The company itself denies and, in its own words, makes no products for military use at all. SMIC is much more difficult to buy American products and technology due to the sanctions. The Dutch chip machine manufacturer ASML is the most important supplier for SMIC.