Semiconductor Manufacturing International Corp (SMIC), China’s largest contract chipmaker, reported a 16.2 per cent revenue increase for 2025 but expects flat first-quarter revenue as declining low-end orders offset surging demand for AI chips. Net profit rose 39 per cent to US$685.1 million, though it fell short of analyst estimates.
Semiconductor Manufacturing International Corp (SMIC) reported on Tuesday that 2025 revenue increased 16.2 per cent from a year earlier to US$9.3 billion. Net profit surged 39 per cent to US$685.1 million, mainly due to increases in wafer shipments and utilisation rate, as well as changes in product mix.
However, profit for both the full year and the fourth quarter fell short of analyst estimates. The company’s Hong Kong-listed shares dropped 3 per cent to HK$69.40 on Wednesday morning, while its Shanghai-listed stock fell 1.3 per cent to 114.70 yuan.
In an earnings call on Wednesday, Zhao Haijun, co-CEO of SMIC, said the company had seen orders from smartphone vendors and makers of other lower-end products “squeezed” by strong demand for AI chips, leading to the flat revenue expectation. He added that the company was “still well positioned in the current industry development cycle” and that SMIC would proactively address urgent market demand to drive revenue growth in 2026.
Shanghai-based SMIC, which anchors Beijing’s drive for semiconductor self-reliance, shipped a total of 9.7 million wafers in 2025, up 21 per cent from 8 million a year earlier. Capacity utilisation rose by 8 percentage points year on year to 93.5 per cent.
