On February 11th, Zhao Haijun, co-CEO of SMIC (00981.HK), disclosed during an earnings call that, following recent discussions with partners across the industrial chain, the company has observed a notable trend: the robust demand for memory chips, fueled by advancements in artificial intelligence, has tightened the supply of memory chips for mid-to-low-end applications, notably those in mobile phones. Consequently, relevant terminal manufacturers are grappling with a twofold challenge—a shortage of memory chip supplies and escalating prices. Even if these manufacturers attempt to offset costs by raising prices, it could potentially lead to a downturn in demand for their end products. Given these circumstances, wafer foundries have witnessed a decline in mid-to-low-end orders. In contrast, orders related to AI, memory, and mid-to-high-end applications have experienced growth.

Against this backdrop, SMIC, drawing on its technological expertise and leadership in niche segments—such as BCD, analog, memory, MCU, and mid-to-high-end display drivers—as well as its customers' product portfolio, is well-positioned to capitalize on the current industry development cycle. The company intends to proactively address market demands and foster sustained revenue growth through to 2026.