SMIC achieved a revenue growth of 61% thanks to AI projects, sanctions, and import substitution.

Brief overview of SMIC results in 2025

What’s behind these numbers
1. Strong revenue growth in Q4

- In the last quarter SMIC increased revenue by a full 60.7 %, reaching $172.85 M. This exceeded analysts’ expectations of $2.4 B, which had assumed $2.49 B.

2. Overall growth in 2025

- Annual revenue rose to $9.33 B, 16.2 % higher than the previous year. This was made possible by increased demand from Chinese customers and higher utilization of production lines.

3. Increase in capital investment

- CAPEX reached $8.1 B, up 10.5 %. Nevertheless the company managed to keep profitability around 21 %.

4. High production load

- Conveyors operated at 93.5 % capacity, directly impacting profit and revenue growth.

Why SMIC is growing
- Regional factors: In China the import substitution policy is strengthening, and specific regional incentives for local contract chip manufacturers are emerging.

- US and allied sanctions limit access to advanced foreign equipment. This forces SMIC to seek suppliers domestically, accelerating the development of China’s lithography industry.

- Capacity shortages allow the company to raise service prices, thereby improving financial performance.

Conclusion
SMIC demonstrates sustainable growth in both revenue and profit despite external constraints. With high production utilization, support from Chinese authorities, and active localization of equipment, the company maintains competitiveness amid the global battle for semiconductor technology.