TECH

SMIC Revenue Rises as Profit Slips on Expansion Costs

Published: Feb. 11, 2026 11:57 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

The logo of SMIC. Photo: VCG

Semiconductor Manufacturing International Corp. reported a 12.8% increase in fourth-quarter revenue, though net profit declined as heavy spending on capacity expansion weighed on earnings.

The Chinese mainland’s largest chip foundry posted revenue of $2.49 billion for the three months ended December, according to a Tuesday earnings release. Net profit fell 24.9% from a year earlier to $203 million, as higher depreciation expenses cut the company’s gross margin by 3.4 percentage points to 19.2%.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

SMIC's Q4 2025 revenue rose 12.8% to $2.49 billion, but net profit fell 24.9% to $203 million due to higher expenses.
Full-year 2025 revenue increased 16% to $9.33 billion with a 39.1% net profit gain, driven by strong wafer sales and high capacity utilization (95.7% in Q4).
SMIC plans $8.1 billion in 2026 capital expenditure; AI demand boosts business but strains supply for some customers.

AI generated, for reference only

Who’s Who

Semiconductor Manufacturing International Corp.: Semiconductor Manufacturing International Corp. (SMIC) reported a 12.8% rise in Q4 revenue to $2.49 billion, but net profit fell 24.9% to $203 million due to heavy capacity expansion spending. For full-year 2025, revenue increased 16% to $9.33 billion, with net profit up 39.1% to $685 million. SMIC plans to maintain capital expenditures at approximately $8.1 billion in 2026 to expand capacity, driven by strong AI-related demand.

AI generated, for reference only