It is being reported that SMIC's Beijing Chip Plan has recently begun to encounter setbacks. According to Applied Materials, an American equipment provider to SMIC, some of the equipment deliveries which were scheduled to reach the company in March and April have now been postponed.

Although it is still not known what kind of trouble the company is facing, it is rumored that Beijing Municipal Government has offered to support to industry by offering a 15% investment.

Beijing is thought to hold a strong advantage in the chip-manufacturing industry in terms of talented personnel and funds, but the city's natural environment is proving a hindrance to developing the industry as it abundant water resources and high air quality, both of which are badly lacking.