Analysis
SMIC's consistent investment in advanced processes, like their equivalent 7nm technology, shows a strong commitment to the future of AI chips. This strategic focus, coupled with the increasing demand from the domestic market, positions them well to capitalize on the growing AI sector. Their expansion plans, despite overall market conditions, signal a forward-thinking approach to innovation.
Key Takeaways
- •SMIC increased its capital expenditure by 11% to $8.1 billion, exceeding expectations.
- •The company's focus is on expanding capacity to meet domestic customer needs, already ranking third globally in wafer production.
- •Consumer electronics, driven by domestic demand, is the main growth driver, representing almost 50% of revenue.
Reference / Citation
View Original"Even with traditional semiconductors still relatively weak, the company is still increasing capital investment to expand capacity and upgrade technology."