On November 17, reports emerged indicating that SMIC, during its investor relations event record, disclosed that its production lines are currently operating at full throttle. In the third quarter, the capacity utilization rate soared to a remarkable 95.8%, signaling robust order volumes and a demand-supply imbalance with demand outstripping supply.

Addressing the absence of a significant uptick in fourth-quarter guidance, SMIC provided a detailed explanation. On one hand, the mobile phone market is grappling with a shortage and skyrocketing prices of memory chips. Customers are apprehensive that even if other chips are available, the lack of memory chips will hinder the assembly of complete devices. Moreover, they need to manage the costs of other chips effectively. Consequently, all stakeholders find themselves in a negotiation and wait-and-see phase.

On the other hand, customers within the network communication industry have adopted a more cautious approach to placing orders in the fourth quarter, driven by concerns over inventory buildup. This has led to a partial shift of market orders to competitors. Given the overall cautious market sentiment, the company has refrained from setting high-growth expectations for the fourth quarter.