It's hugely capital intensive to invest in semiconductor fabs. SMIC's investment strategy mirrors that of BOE in LCD in the past. That is, they create subsidiaries or form joint ventures with government funds or local governments (Big Fund I, Big Fund II, Shanghai Fund I, Shanghai Fund II, etc.) to invest in separate projects or fabs. That way, they can leverage their capital and invest in more projects. Their fabs are in different cities, and the respective local governments also have incentive to chip in. They can easily leverage tens of billion dollars this way.More information: with the capital injection ($2.2 billion from Chinese state investors+$2.8 billion from this IPO on Shanghai stock exchange = $4 billion), SMIC could march into the production of 7-nm and even 5-nm wafers in the coming three years.