TECH

SMIC Revenue Rises as Profit Slips on Expansion Costs

Published: Feb. 12, 2026 3:20 a.m. GMT+8

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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%.

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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.

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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.

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