SMIC expects strong 2026 revenue, positive on AI-driven demand
SMIC forecasts 2026 revenue exceeding US$12bn, up nearly 30 per cent. Co-CEO Zhao Haijun says AI and data-centre products remain in short supply, with demand growing and capacity gaps widening. He is positive about 2027 business outlook despite global semiconductor equipment supply chain constraints
Semiconductor Manufacturing International Corporation (SMIC) has forecast its full-year revenue for 2026 will exceed US$12bn, up nearly 30 per cent year on year, with gross margin of about 26 per cent, expanding by roughly 5 percentage points.
Co-chief executive officer Zhao Haijun said artificial-intelligence (AI) and data-centre related products remain in short supply, customer demand continues to grow and the capacity gap is widening, while demand for mid- to high-end products has not weakened. He noted that AI development is still in its early stages and has created many new industries, with numerous companies building their own small data centres to improve efficiency and accelerate product iteration while reducing exposure to volatility in leasing computing power prices. Zhao said he held a positive and constructive view on the company's business outlook for next year.
However, Zhao said the global semiconductor equipment supply chain is currently tight, with delivery times lengthening and some equipment delivery schedules uncertain. Although this does not affect the implementation of capacity expansion plans, it will impact the company's full-year capital expenditure. He said SMIC is improving operational efficiency to offset rising material costs and other challenges, but capacity utilisation is already quite high. The company may still need to discuss cost sharing with customers in the future, and he estimated that prices for AI-related products, as well as those for the automotive and industrial sectors, may maintain a steady upward trend.
Zhao noted that the current quarter is a traditional low season for the industry, with customers still assessing inventory levels and planning next year's order demand. However, he believes AI demand has the potential to extend the semiconductor industry's upward cycle, and the trend toward localisation of the industrial chain continues. SMIC will strategically bind with customers and support capacity expansion in line with demand.