SMIC Reports 5% Rise in Q1 Profit, Misses Estimates Despite Strong Demand
China’s biggest contract chipmaker, Semiconductor Manufacturing International Corp, reported a 5% year-on-year increase in first-quarter profit on Thursday, supported by steady customer demand and strong order momentum.
The company said profit attributable to owners reached $197.4 million for the January–March quarter, falling short of analysts’ expectations of $215.2 million, according to LSEG data.
Revenue climbed 11.5% from a year earlier to $2.5 billion, matching market forecasts. The results highlight continued resilience in China’s semiconductor sector despite ongoing geopolitical tensions and export restrictions affecting advanced chip technologies.
In a stock exchange filing, SMIC said it had become more optimistic about its overall operations this year compared with the previous quarter ended in December. The company cited robust customer demand and healthy existing orders as key drivers behind its improved outlook.
SMIC has emerged as a critical player in China’s push for semiconductor self-sufficiency as Beijing increases investments in domestic chip production amid tightening U.S. export controls. The company primarily manufactures chips for consumer electronics, industrial applications, and automotive sectors.
However, analysts continue to monitor how rising competition, pricing pressure, and restrictions on access to advanced chipmaking equipment could impact the company’s long-term growth trajectory.