SMIC Quarterly Revenue Tops USD 3 Billion for First Time as Foundry Share Rises
SMIC, mainland China's largest wafer foundry, reported record quarterly revenue of about USD 3 billion, with its global foundry market share continuing to rise. Growth was supported by domestic demand and expanding capacity, even as the global semiconductor market faced pressure. Mature-node demand from automotive electronics, industrial control, consumer electronics, IoT and communications equipment underpinned revenue, while the company continued building and expanding wafer fabrication facilities across China.
SMIC's latest operating data show that the company's quarterly revenue reached about USD 3 billion, a record for the company, while its share of the global wafer foundry market continued to rise. SMIC is mainland China's largest wafer foundry. Supported by domestic Chinese market demand and a continuously expanding capacity footprint, the company maintained growth even as the global semiconductor market came under pressure.
SMIC's revenue is tied to demand for mature-process products. Automotive electronics, industrial control, consumer electronics, the Internet of Things and communications equipment continue to generate relatively high purchasing demand for mature-node chips. Compared with the advanced-process market, which is affected by export restrictions and international competition, the mature-node business is one of the company's revenue sources.
SMIC continues to advance its capacity expansion plans, building and expanding wafer manufacturing facilities in multiple locations across China to increase capacity and meet domestic semiconductor demand. As new capacity is gradually released, the company's overall wafer shipment capability continues to strengthen. In the global wafer foundry industry, the company still has a clear gap with TSMC and Samsung in the most advanced process segments, while in the mature-process market it is raising capacity utilization and optimizing its product mix.
China is one of the world's largest semiconductor consumption markets. The continued development of local electronics manufacturing, the automotive industry and industrial automation has led a growing number of end-product companies to seek a more stable local supply chain system. In the global semiconductor industry, artificial intelligence and high-performance computing are driving demand for advanced processes, while a large number of conventional chips still rely on mature-process production. SMIC focuses on the mature-process market and faces factors including international technology restrictions, difficulty in obtaining advanced equipment and industry competition.
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