Reported November 13, 2026. Semiconductor manufacturer SMIC said third-quarter 2026 sales reached a record $3.19 billion, up 6.1% from the previous quarter. At a results briefing, co-CEO Zhao Haijun said customer demand for chips used alongside AI systems—including BCD chips, specialized memory and controllers—grew faster than the company had expected, pushing revenue above its guidance range.
Under International Financial Reporting Standards, quarterly sales rose 33.9% from a year earlier, while gross margin reached 29.9%, up 4.6 percentage points from the second quarter. Separately, the company reported revenue of 21.983 billion yuan, up 28.1% year on year, and net profit attributable to listed-company shareholders of 2.847 billion yuan, up 87.6%.
Zhao attributed the quarterly sales increase to both higher shipments and higher average wafer prices. Shipments exceeded 3 million eight-inch-equivalent wafers for the first time, rising 5.7% quarter on quarter, while the average wafer price rose 1.8%. Capacity utilization reached 97.3%, up 3.6 percentage points. China accounted for 90.8% of third-quarter revenue, compared with 7.8% from the United States and 1.4% from Eurasia.
SMIC expects fourth-quarter sales to rise 4%–6% from the third quarter as it shifts capacity toward products with stronger demand. It forecast a lower gross margin of 26%–28%, citing rising costs and increased engineering and research wafer runs. Based on results for the first three quarters and the midpoint of its fourth-quarter guidance, the company expects full-year 2026 sales to exceed $12 billion. Zhao also said tight global equipment supplies and uncertain delivery times could affect the execution of this year’s capital spending, though not its planned capacity expansion.
