China's SMIC Doubles Profit and Hits Record Revenue on AI Chip Demand
Key Facts
China's SMIC reported a net profit of $428 million for the third quarter, beating analyst forecasts of $397 million. WSJ reported that the company achieved record quarterly revenue of $3.19 billion, driven by surging demand for semiconductors used in artificial intelligence applications.
The company projects full-year 2026 revenue to exceed $12 billion, representing nearly 30% growth, with a target gross margin of approximately 26%. However, SMIC warned that global equipment shortages and extended delivery times could disrupt future capital expenditure, while forecasting a decline in profit margins for the fourth quarter compared to third-quarter levels.
China is scheduled to release its annual Industrial Production data on November 16, 2026, which will provide further context for the manufacturing sector where SMIC operates. Retail Sales and Unemployment Rate data are also due on the same day, potentially impacting domestic demand expectations.
Latest Updates · 1
- Notable·
Update: SMIC shares rose nearly 5% following the announcement of these results. Additionally, the company issued specific guidance for fourth-quarter 2026 revenue growth, projecting an increase between 4% and 6%.