At the earnings conference, Zhao Haijun, Co-CEO of SMIC, revealed that the company is set to augment its 12-inch wafer production capacity by roughly 50,000 units in 2025, with further expansion planned for 2026. In response to shifts in the external business landscape, SMIC has opted to proactively acquire certain critical equipment ahead of schedule. However, it acknowledges that the procurement of supporting equipment may still be pending. Consequently, the equipment already procured might not necessarily translate into full-fledged production capacity within the current year. By year-end, the company expects to achieve a monthly production capacity increase of approximately 40,000 12-inch wafers.

In a bid to cater to local manufacturing needs, SMIC remains committed to substantial investments aimed at propelling revenue growth. Yet, this strategy is expected to impose significant depreciation pressures. Specifically, the company anticipates a year-on-year surge in total depreciation by around 30% in 2026. To mitigate this challenge, SMIC plans to tap into its internal resources, sustain high utilization rates, and implement cost-cutting measures to bolster operational efficiency.