On May 19, SMIC released a record of investor relations activities, indicating that, based on current customer demand and orders in hand, the company is more upbeat about its overall business conditions for this year compared to the previous quarter. The optimism is underpinned by several factors:

Firstly, the robust demand for supporting chips, spurred by artificial intelligence (AI), has led to a capacity shortage in power management chips. Secondly, the overseas siphon effect of AI has driven consumers, IoT, and other clients to seek manufacturing capacity within mainland China, resulting in a reshoring of orders. Thirdly, AI is propelling demand for emerging applications such as Time-of-Flight (ToF) technology, electric vehicles, and robotics, with local companies actively tapping into these markets. Fourthly, the drive for industrial chain localization is boosting demand for domestically produced logic and network communication chips. Fifthly, the impact of price increases and customers' proactive stockpiling efforts also contribute to the positive outlook.

Amidst the evolving market landscape, SMIC's strengths in technological reserves, platform diversification, and flexible capacity conversion have bolstered its ability to secure orders.