SMIC

中芯國際 / 中芯國際集成電路製造有限公司

China's largest pure-play foundry, providing critical domestic manufacturing capacity for chips used in consumer electronics, automotive, and edge AI devices.

SSE: 688981 (STAR Market)
HKEX: 00981 (Main Board)
Profile as of September 12, 2026
#38 in the AsiaAI Tech Index
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SMIC is the central pillar of China's semiconductor localization drive, operating at massive scale with high utilization. However, its inability to access EUV lithography due to US export controls severely constrains its ability to compete at the leading edge of AI accelerator manufacturing.

Key figures

Revenue FY2025: US$9.326 billion
Revenue growth FY2025: 16.2% year over year
Operating margin FY2025: 11.9%
Net income FY2025: US$685.1 million
R&D spend FY2025: US$773.6 million (8.3% of revenue)
Capital expenditure FY2025: US$8.399 billion
Market capitalization Sep 11, 2026: HK$540.70 billion Estimate
Monthly production capacity FY2025: 1.05875 million 8-inch-equivalent wafers
Wafer-fab utilization FY2025: 93.5%
China share of revenue FY2025: 85.6%
Cumulative granted patents 2025-12-31: 14,511

Overview

SMIC was founded in 2000 and has grown into China's largest and most capable pure-play foundry. Operating from its headquarters in Shanghai, it provides contract wafer fabrication on 8-inch and 12-inch wafers, alongside process-development, design-service, IP-support, and photomask-related services.

The company is a listed holding company incorporated in the Cayman Islands, with material state-linked shareholders rather than a single operating parent. It operates at massive scale, ending 2025 with a monthly capacity of over one million 8-inch-equivalent wafers and an average utilization rate of 93.5%.

SMIC's structural position makes it the central pillar of China's semiconductor localization drive. While it trails global leaders at the cutting edge, it provides the essential domestic manufacturing capacity that Chinese fabless chip designers require for consumer electronics, connectivity, and industrial applications.

The AI angle

SMIC's relevance to AI stems from manufacturing the logic, connectivity, power-management, and edge-device chips that support China's computing ecosystems, rather than from producing leading AI accelerators itself. The company notes that artificial intelligence, data centers, and autonomous driving contribute to demand for domestic mid- to high-end chip manufacturing.

Its exposure is broad but mostly indirect. SMIC does not disclose revenue attributable specifically to AI or data-center chips. Instead, its wafer-sales application mix is dominated by consumer electronics at 43.2% in 2025, followed by smartphones at 23.1%, connectivity and IoT at 15.0%, industrial and automotive at 11.0%, and computers and tablets at 7.7%.

Because it lacks access to extreme ultraviolet (EUV) lithography, SMIC cannot easily manufacture the highest-performance AI accelerators. However, it remains critical for fabricating the supporting silicon used in AI servers, power infrastructure, and edge AI devices across the domestic Chinese market.

Technology and moat

SMIC's competitive advantage rests on its massive manufacturing scale within mainland China and its wide portfolio of mature and specialty process platforms. Its moat includes years of accumulated yield learning, equipment qualification, customer-specific design-rule support, and process-design kits.

The company can produce 7 nm-class logic using deep-ultraviolet (DUV) multi-patterning techniques. However, it lacks access to EUV lithography, leaving it materially behind TSMC, Samsung Foundry, and Intel Foundry in leading-edge node scale, yield maturity, and high-volume advanced-node capability.

Against domestic competitors like Hua Hong Semiconductor, SMIC has broader process coverage, greater scale, and more advanced logic capability. Its 14,511 granted patents evidence a deep IP portfolio, and its multi-billion-dollar annual capital expenditure creates a high barrier to entry for new domestic challengers.

Five-pillar assessment

Scale and market position: China's largest pure-play foundry, operating at massive scale with over one million 8-inch-equivalent wafers in monthly capacity and high utilization.
Technology and R&D: Capable of 7 nm-class production using DUV multi-patterning, but structurally constrained from leading-edge EUV manufacturing by export controls.
Supply-chain centrality: Deeply integrated into China's domestic fabless ecosystem, serving major local players like Huawei, while heavily dependent on restricted foreign equipment.
Financial momentum: Strong revenue growth and high utilization driven by domestic localization demand, supported by massive capital expenditure exceeding US$8 billion annually.
Governance and quality: A publicly listed company with professional management and audited IFRS financials, materially influenced by state-linked shareholders and exposed to severe geopolitical risks.

Supply chain and relationships

SMIC depends heavily on a global supply chain for semiconductor manufacturing equipment, replacement parts, chemicals, silicon wafers, photoresists, and EDA software. Historically, it has relied on major international suppliers including ASML, Applied Materials, Lam Research, and Tokyo Electron.

On the customer side, SMIC serves a growing base of domestic fabless chip developers seeking supply-chain localization. Huawei Technologies is a reported customer for Chinese semiconductor needs, including 7 nm-class chips. Historically, SMIC has also served international clients like Qualcomm, Broadcom, and Texas Instruments, though current procurement volumes are not disclosed. China represented 85.6% of its total revenue in 2025, highlighting its deep integration into the domestic ecosystem.

Customers

Huawei TechnologiesReported user of SMIC manufacturing for Chinese semiconductor needs
QualcommHistoricalHistorically identified as a customer
BroadcomHistoricalHistorically identified as a customer
Texas InstrumentsHistoricalHistorically identified as a customer

Suppliers

ASMLHistoricalSupplier of lithography equipment
Applied MaterialsHistoricalSupplier of semiconductor fabrication equipment
Lam ResearchHistoricalSupplier of deposition and etch equipment
Tokyo ElectronHistoricalSupplier of semiconductor manufacturing equipment

Partners

Huawei TechnologiesInferredDomestic supply-chain alignment

Competitors

Hua Hong SemiconductorInferredCompetes for mature-node and specialty-node foundry customers
Taiwan Semiconductor Manufacturing CompanyInferredCompetes across foundry services
United Microelectronics CorporationInferredCompetes in mature and specialty process technologies
GlobalFoundriesInferredCompetes in mature-node and specialty-node foundry services
Samsung ElectronicsInferredCompetes in foundry services

Geopolitics and risk

Geopolitics is the defining constraint on SMIC's technological advancement. The company's access to advanced lithography, deposition, etch, inspection, and EDA tools is severely restricted by US export controls and Entity List designations. Most notably, the unavailability of EUV lithography makes scaling beyond 7 nm-class DUV multi-patterning materially more difficult and costly.

SMIC is highly exposed to domestic demand conditions and China-specific regulation, with over 85% of its revenue coming from the mainland. Its state-linked ownership supports strategic capacity building but exposes it to policy-driven capital allocation and foreign-customer hesitation. Additionally, its operations face regional supply-chain risks, including potential Taiwan Strait disruption or tighter Japanese and Dutch export controls.

Risk matrix
Risk	Severity	Why it matters
US export controls	High	Constrains access to advanced lithography, deposition, etch, inspection, and EDA tools.
EUV exclusion	High	Lack of EUV lithography makes scaling beyond 7 nm-class DUV multi-patterning materially more difficult.
China revenue concentration	High	China contributes 85.6% of FY2025 revenue, exposing SMIC to domestic demand conditions.
Technology-node gap	High	Commercial process position lags leading-edge competitors, limiting participation in premium AI accelerators.
Equipment and spare-parts continuity	High	Supply disruption can reduce utilization and delay capacity ramps.
Semiconductor-cycle volatility	Medium	Revenue depends on foundry demand, inventory cycles, and consumer electronics.
State-linked governance and policy exposure	Medium	State investment exposes SMIC to policy-driven capital allocation and sanctions scrutiny.
Cross-strait and regional supply-chain risk	Medium	Taiwan Strait disruption or tighter Japanese and Dutch controls could affect equipment access.

Governance and ownership

SMIC is a Cayman Islands-incorporated listed holding company with shares traded on the Shanghai STAR Market and the Hong Kong Stock Exchange. It is not wholly state-owned but is materially influenced by state-linked capital, including stakes held by China Information and Communication Technology Group and China Development Bank Capital.

The company is led by Chairman Liu Xunfeng and Co-CEOs Zhao Haijun and Liang Mong Song. It maintains a board with independent non-executive directors and reports its consolidated financial statements in US dollars under IFRS, audited by Ernst & Young. It must navigate complex compliance requirements across Hong Kong, Shanghai, and the Cayman Islands, alongside material PRC industrial-policy exposure.

What to watch

Whether SMIC sustains utilization above 90% while bringing new 12-inch capacity into production.
Whether FY2026 capital expenditure remains near the US$8.4 billion FY2025 level or moderates.
Whether revenue from China remains near or above the FY2025 level of 85.6%.
Whether the company reports progress in advanced packaging research for domestic AI chips.
Whether US, Dutch, and Japanese controls further restrict replacement parts or DUV lithography.
Whether SMIC can expand commercially viable 7 nm-class output without EUV access.

Recent developments

August 27, 2026Interim-results announcement confirmed the incumbent board and co-chief-executive structure.
March 26, 2026Released FY2025 results, reporting revenue of US$9.326 billion, up 16.2% year over year.
December 31, 2025Ended the year with monthly capacity of 1.05875 million standard logic 8-inch-equivalent wafers and annual utilization of 93.5%.
August 28, 2025Published interim results and confirmed Liu Xunfeng as Executive Director, with Zhao Haijun and Liang Mong Song as Co-Chief Executive Officers.

Coverage on AsiaAI.FYI

Baidu Domestic AI Stack: Kunlun Chips and Ernie LLMs Cut Western Silicon Exposure August 20, 2026
Why the 35% Surge in Global Chip Sales Is a Warning for Western Tech Investors? August 7, 2026
Is China’s New Yuliansheng DUV Lithography Shipments the End of Western Tool Hegemony? July 28, 2026
Will Samsung’s New PCIe 6.0 eSSDs Break the AI Memory Bottleneck? July 8, 2026
East Asia’s AI Gold Rush Tightens as Workforce Strains Mount June 19, 2026
AI Fuels East Asia’s Tech Race: Foundries Surge, China’s Quantum Leap June 16, 2026

Guides that cover SMIC

About this profile

Compiled with AI-assisted research from company filings, market data, and published reporting as of September 12, 2026, then reviewed by AsiaAI.FYI. Figures marked Estimate are not company-reported. Check primary filings before relying on any number.

Confidence: B. Audited financial, capacity, operating, and governance data are high confidence, while named customer relationships, AI-specific revenue, and whole-company market capitalization are weaker.

Main sources: SMIC FY2025 annual report and audited IFRS financial statements; SMIC corporate information page; SMIC interim-results exchange filing; Hong Kong and Shanghai listing disclosures; Market-data services; Export-control regulatory and industry reporting.

All 36 sources

Position in the AI stack

The primary domestic manufacturing layer for Chinese fabless chip designers, providing mature and specialty node capacity for edge AI, connectivity, and automotive applications.

Legal name: Semiconductor Manufacturing International Corporation
Headquarters: Shanghai, China
Founded: 2000
Founders: Richard Chang Ru-gin / 張汝京
Leadership: Liu Xunfeng / 劉訓峰, Executive Director and Chairman
Zhao Haijun / 趙海軍, Co-Chief Executive Officer
Liang Mong Song / 梁孟松, Co-Chief Executive Officer
Employees: 20,223 (2023-12-31)
Ownership: Publicly listed
Incorporated: Cayman Islands
Listings: SSE: 688981 (STAR Market)
HKEX: 00981 (Main Board)
Business: Pure-play logic foundry and specialty process manufacturing
Sector: Foundry & Chip Manufacturing
Website: smics.com