SMIC saw robust demand for AI supporting chips in the first quarter of 2026, driving sequential revenue growth across BCD, logic, and embedded memory product lines. The company’s 8‑inch wafer revenue rose 6% quarter‑over‑quarter, primarily fueled by surging market demand for AI auxiliary chips. Strong AI‑related order inflows crowded out general‑capacity supply, creating a tight production‑demand balance and lifting revenue from BCD, logic, and embedded memory products.
By end‑market application, SMIC’s Q1 2026 wafer revenue breakdown stood at 19% for smartphones, 14% for PCs and tablets, 46% for consumer electronics, 7% for connectivity and wearable devices, and 14% for industrial and automotive sectors. In response to shifting market dynamics, the company proactively reallocated production capacity toward high‑demand product platforms including BCD and memory chips. This strategic adjustment drove an 18% sequential revenue increase in PC, tablet, industrial and automotive businesses, while smartphone‑related revenue declined 10% quarter‑over‑quarter amid market structure shifts.
SMIC maintains an optimistic full‑year operational outlook for 2026, with annual capital expenditure projected to remain flat year‑over‑year. Currently in a critical phase of capacity expansion and market share expansion, the company plans to sustain steady capital investment scale consistent with the previous year.
The company issued upbeat Q2 2026 operational guidance, forecasting sequential revenue growth of 14%–16% and a gross profit margin of 20%–22%. Backed by solid customer demand and ample on‑hand orders, SMIC has raised its full‑year operational expectations compared with the prior quarter.
Multiple industry tailwinds underpin the company’s positive outlook.
The rapid expansion of the AI industry has triggered robust demand and tight capacity for power management chips. Additionally, the company benefits from returning overseas manufacturing orders, booming demand for emerging applications such as automotive electronics and robotics, accelerated domestic semiconductor substitution, steady product price hikes, and proactive customer inventory stocking.
Leveraging its profound technological accumulation, diversified product platforms and flexible capacity deployment capabilities, SMIC is able to rapidly redirect production resources toward high‑growth tracks, including power management chips, logic chips, dedicated memory chips, analog chips, high‑precision ADCs and MicroOLED components. Meanwhile, the company continues to scale up capacity construction and secure long‑term customer agreements to lock in future orders, consolidating sustained growth momentum for long‑term business expansion.
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