On May 15, Zhao Haijun, co-CEO of Semiconductor Manufacturing International Corporation (SMIC), disclosed during the Q1 earnings call that the company recorded sales revenue of $2.505 billion in the first quarter, marking a 0.7% sequential increase. Of this total, wafer revenue constituted a substantial 93.9%, experiencing a 2.3% sequential uptick in value. Although the volume of shipments saw a slight 0.2% decline, the average selling price rose by 2.5%. This trend was attributed to the consistent upward trajectory of product foundry prices within the company's core competitive domains. In Q1, SMIC augmented its production capacity by nearly 9,000 wafers, equivalent to 12-inch capacity, yet the overall capacity utilization rate stood at 93.1%, reflecting a 2.6 percentage point sequential decrease. This dip was primarily ascribed to two key factors: firstly, the 'siphon effect' induced by the artificial intelligence boom prompted smartphone manufacturers to curtail orders in Q4 of the previous year, driven by apprehensions over potential memory chip shortages, with residual effects persisting into Q1; secondly, new factories transitioned beyond the initial startup phase in Q1, and the freshly incorporated capacity was factored into the utilization rate computation.