This article first starts with the US China trade war, and by searching for US sanctions against SMIC and analyzing SMIC's regional revenue, it is concluded that SMIC's main problem lies in the lack of international market share and the need to expand outward. Then, through SWOT analysis, it was found that SMIC has good suppliers and investments. But it lacks top‐notch technology and has a high employee turnover rate. SMIC should fully leverage its advantages and leverage opportunities to expand outward. Relying on the opportunities provided by the global chip crisis and the EU's chip bill, SMIC should take the EU as the first step towards expansion. After determining the direction, this article uses the Porter's Five Forces model to analyze the feasibility of SMIC's expansion into the European Union and provides appropriate suggestions for expanding competitiveness. Finally, suggestions are proposed to make up for other shortcomings to ensure the future development of SMIC.