SMIC Revenue Tops US$3B as AI Boom Drives 5.7% Chip Price Rise
Synopsis
China’s top chip foundry raised prices for its most sought-after capacity as AI demand lifted second-quarter wafer shipments 14%, while profit attributable to shareholders nearly tripled to US$479.2 million.
SMIC chip prices increased with a bigger production run, but the utilization rate did not climb beyond significant levels. Capacity rose by 1.7% per month to about 1.1 million 8-inch equivalent wafers, with utilization at 93.7%.
Second-quarter revenue was US$3.006 billion, a 36% increase year-over-year, according to SMIC. Profit after tax was US$479.2 million, up more than three times compared to the previous year, driven by a one-time gain from a subsidiary
China remained the largest market for SMIC, accounting for 90% of second-quarter revenue. The other 2% was allocated to other markets, with the United States, taking 8%,
The company’s capital expenditures (capex) increased to US$3.4 billion in the first half of 2026, from US$3.3 billion in the previous year. SMIC also saw an additional 8,000 wafers of monthly 12 capacity in the second quarter
Global semiconductor demand strengthens
According to the WSTS Spring 2026 Semiconductor Market Forecast, worldwide semiconductor sales are projected to total US$1.51 trillion in 2026, a 90% increase. The value of memory sales is projected at more than US$800 billion, with logic semiconductor sales expected to rise by 37%
WSTS predicts the semiconductor market will grow by 112% in the Americas, 87% in Asia Pacific, 58% in Europe, and 28% in Japan.
The United States is grouped within the Americas in this forecast, while China is part of the Asia Pacific region. Meanwhile, the figures include Australia in the Asia Pacific region in the WSTS regional breakdown.
SMIC expects third-quarter revenues to rise by 2-4% over the second quarter. The company will look to optimize existing capacity and accelerate the ramp-up of new lines, as it seeks to respond to supply constraints, said Co-CEO Zhao Haijun.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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