In the segment of advanced lithography.
The US authorities are limiting the development of not only the Chinese semiconductor industry as a whole, but also individual local companies. Among contract chip manufacturers, SMIC is a leader in both business scale and technology. Some sources even reported last fall that SMIC claims to develop a process technology that resembles the 5nm technology of competitors in its characteristics.
According to DigiTimes, many customers of SMIC and smaller Chinese contract manufacturers have already placed their orders with Taiwanese TSMC, having decided to migrate due to US sanctions.
Image Source: SMIC
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It is likely that such an outflow will only increase in the future – at least if we are talking about sufficiently advanced lithography, because the US restrictions do not yet apply to mature lithography.