Aug. 29, 2025 –
According to Commercial Times, China’s leading foundry SMIC delivered a strong performance in the first half of 2025, with revenue reaching US$4.456 billion, up 22% year-on-year. Net profit attributable to shareholders came to US$321 million, a 35.6% increase from a year earlier.
As the report highlights, wafer foundry business revenue totaled US$4.229 billion during the period, up 24.6% year-on-year.
Regarding its first-half 2025 performance, SMIC noted that downstream customers in the supply chain have been accelerating procurement and replenishing inventories, while the company has actively worked with customers to ensure shipments. As Economic Daily News indicates, the company expects this trend to continue into the third quarter of 2025.
The fourth quarter is traditionally a low season for the wafer foundry industry, when rush orders and pull-in shipments typically slow. However, as Economic Daily News highlights, SMIC stated in its announcement that since overall capacity remains in short supply, the slowdown will not have a significant impact on the company’s capacity utilization rate.
SMIC stated that in the second half of 2025, uncertainties from U.S. tariff policies, geopolitical tensions, and seasonal adjustments in downstream markets will remain a challenge. However, the strengthening trend of supply chain localization is driving more wafer foundry demand back to China, which is expected to continue supporting the company’s performance. The company’s goal for 2025 is to exceed the industry average of its peers, as Economic Daily News indicates.
SMIC’s Capacity Expansion Plan
In the meantime, SMIC plans to double its 7-nanometer production capacity next year, the most advanced process currently in mass production in China, according to Financial Times, citing sources.
Meanwhile, Financial Times reports that China aims to triple its overall AI processor output next year. Citing sources, the report notes that one fab dedicated to manufacturing Huawei’s AI chips is expected to begin production by the end of this year, with two additional plants slated to come online in 2026.
As Financial Times further points out, once fully ramped, the combined capacity of these three plants could surpass the current output of comparable lines at SMIC. The report also notes that the expansion will enable smaller Chinese chipmakers such as Cambricon, MetaX, and Biren to secure larger shares of SMIC’s capacity, intensifying competition in China’s rapidly expanding market.