SMIC Announces Q4 2025 Financial Results: Steady Progress in Performance

SMIC (Semiconductor Manufacturing International Corporation) has released its financial results for the fourth quarter of 2025. In this quarter, the company achieved revenue of $2.489 billion, marking a 4.5% quarter-over-quarter  increase compared to Q3 2025, and a 12.8% year-over-year  growth compared to Q4 2024. Gross profit for the quarter amounted to $478 million, a decrease of 8.5% QoQ and 4.2% YoY, with a gross margin of 19.2%, down 2.8 percentage points from the previous quarter and down 3.4 percentage points from the same period last year.

In Q4 2025, the company’s sales revenue was $2.489 billion, a 4.5% increase from $2.381 billion in Q3 2025. This growth was primarily driven by a higher volume of wafer shipments and an optimized product mix. However, the decline in gross margin was attributed to an increase in depreciation costs. Regarding production capacity, the company maintained a high capacity utilization rate of 95.7%, with quarterly wafer shipments totaling 2.515 million 8-inch equivalent wafers, representing a slight increase of 0.6% QoQ and a significant 26.3% YoY growth, demonstrating strong production efficiency.

In terms of revenue structure, consumer electronics continued to be the largest revenue contributor, accounting for 47.3% of the total revenue in Q4, up 3.9 percentage points QoQ and 7.1 percentage points YoY. Smartphones remained the second-largest contributor, contributing 21.5% to the revenue. Other sectors, such as industrial and automotive applications, computing and tablets, and internet and wearables, contributed 12.2%, 11.8%, and 8.0%, respectively.

Regarding its earnings outlook, SMIC provided clear guidance for the first quarter of 2026, expecting quarterly revenue to remain flat sequentially and gross margin to be between 18% and 20%. During the earnings call, Co-CEO Zhao Haijun explained that to address market changes in capacity deployment, SMIC has proactively adjusted its capacity allocation, reducing low-to-mid-range consumer electronics wafer starts and redirecting freed-up capacity to memory and memory-related fields, BCD, power supply, industrial and automotive sectors. Simultaneously, some capacity has been transferred to high-end consumer electronics applications to assist customers in product upgrades. Furthermore, the company is persuading some customers to avoid excessively reducing order sizes, preserving flexibility for subsequent demand recovery.