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Summary form only given. Since 2000, China's new policy of encouraging the SC industry was published, it has made significant contributions to the advancement of China's IC technology development. As one of the pioneers in sub-micron technologies in China Mainland, SMIC had to overcome numerous challenges in technology development, design, and manufacturing. Going forward, the recent advances in 90nm, 65nm, and design for manufacturing (DFM) will be ever vital for further propelling China to the forefront of IC development. This report will highlight some of the challenges that we have faced and how it overcame them and it will outline some possible challenges for Chinese semiconductor development that still await us in the future.