SMIC Expects Record Revenue as Chip Shortages and Local Demand Keep Fabs Running at Full Capacity
Semiconductor Manufacturing International Corporation (SMIC), China’s largest chip foundry, said on Friday that it is on track to post record full-year revenue exceeding US$9 billion. The company’s strong performance comes as global chip shortages persist and China’s push for supply-chain localization intensifies, keeping SMIC’s factories operating at near-maximum capacity throughout the year.
During an earnings call, co-CEO Zhao Haijun said the company has continued to see unusually strong demand across the semiconductor supply chain, despite what is typically a slower period for the industry. “The iterative effects across the supply chain are continuing, which leads to a stronger-than-usual off-season,” Zhao said. “Our production remains in a state of supply falling short of demand. Our revenue is set to reach a new level.”
Zhao explained that the ongoing squeeze on foundry capacity has played a central role in SMIC’s performance. Many chipmakers worldwide have struggled to meet rising demand from sectors including smartphones, automotive electronics, industrial equipment, and consumer devices. As a result, companies looking to secure reliable chip production have turned to SMIC, helping keep its fabs fully booked.
Another major driver of growth has been the sharp increase in localization efforts by Chinese chip designers. As US restrictions and geopolitical tensions push China to accelerate its self-sufficiency strategy in semiconductors, more domestic companies are shifting production to local foundries. This trend has helped stabilize orders for SMIC and reduced the traditional seasonal fluctuations that usually affect the industry.
Zhao said this “rush to localize” has effectively eliminated the industry’s typical off-season slowdown. Instead of easing, demand has held steady across multiple sectors, creating what he described as a sustained environment of tight supply. SMIC has responded by maximizing production efficiency and optimizing its fabrication schedules to meet as many customer orders as possible.
Industry analysts say SMIC’s outlook reflects broader changes in the global semiconductor landscape. With supply-chain uncertainties and geopolitical pressure reshaping chip manufacturing patterns, foundries with domestic strategic importance, such as SMIC, are gaining a stronger foothold. Although US export restrictions continue to limit SMIC’s access to advanced manufacturing tools, the company’s ability to operate at full capacity underscores the strength of demand for mature-node chips used in a wide range of everyday electronics.
As SMIC moves into the final quarter of the year, company leaders say they expect demand to remain solid. Zhao emphasized that while challenges persist, particularly in acquiring advanced equipment, the foundry is committed to expanding production capabilities and supporting China’s long-term semiconductor development goals.
