On May 15, Zhao Haijun, co-CEO of Semiconductor Manufacturing International Corporation (SMIC), shared insights at the Q1 earnings briefing, stating that, based on customer demand and a robust order backlog, the company holds a more optimistic view of this year’s overall business conditions compared to the previous quarter. Several factors contribute to this positive outlook:

First, the burgeoning demand for supporting chips, propelled by advancements in artificial intelligence (AI), has resulted in a capacity shortage for power management chips.

Second, the global "siphon effect" of AI has encouraged consumers, Internet of Things (IoT) enterprises, and other clients to seek production capacity in mainland China, thereby triggering a rebound in orders.

Third, AI is driving demand for new applications, such as Time-of-Flight (ToF) technology, electric vehicles, and robotics, with local companies actively exploring these markets.

Fourth, the ongoing push for localization within the industrial chain is spurring demand for domestically produced logic chips, network communication chips, and other semiconductor products.

Fifth, the combined effects of price increases and customers' preemptive stockpiling, driven by concerns over potential supply shortages, are further contributing to the positive business environment.