SMIC stock: AI demand supports wafer prices and Q3 outlook

Published on 11/02/2026 at 09:07 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

SMIC stock remains tied to stronger artificial intelligence demand and tighter foundry capacity. Management expects higher third-quarter revenue.

AI demand supports SMIC outlook

SMIC raised prices for sought-after capacity as artificial intelligence orders strengthened.
Second-quarter shipments increased 14% sequentially and wafer pricing rose 5.7%.
Management expects third-quarter revenue to rise 2% to 4% from the second quarter.

SMIC, KYG8020E1199, Illustration mit AI erstellt.

Semiconductor Manufacturing International Corporation is using strong artificial intelligence demand to raise prices for sought-after wafer capacity, according to The Economic Times. The report, published on August 14, said co-CEO Zhao Haijun expects artificial intelligence-related orders to support foundry demand in the second half of 2026.

Pricing power meets capacity expansion

SMIC raised prices after negotiations with customers and plans further increases for wafers processed in the third quarter. Zhao said a gap remains between SMIC's prices and industry-leading levels, giving the company room to negotiate improved terms for capacity in demand.

Second-quarter shipments reached 2.9 million 8-inch-equivalent wafers, up 14% from the previous quarter, while average wafer selling prices increased 5.7%. Monthly production capacity rose 1.7% sequentially to 1.1 million 8-inch-equivalent wafers, and utilization reached 93.7%.

Revenue outlook remains constructive

SMIC expects third-quarter revenue to increase 2% to 4% from the second quarter, with wafer shipments continuing to rise. Management also plans to adjust existing capacity and accelerate the ramp-up of new production lines as demand for chips used alongside artificial intelligence processors expands.

The second quarter brought revenue above USD 3 billion and profit attributable to shareholders of USD 479.2 million. The company said the profit comparison benefited partly from a one-time gain at a subsidiary, an effect investors should separate from recurring operating performance.

For investors, the combination of higher prices, fuller factories and new capacity improves the near-term revenue setup but also keeps execution and capital-spending demands in focus. SMIC spent USD 3.4 billion on capital expenditure in the first half, compared with USD 3.3 billion a year earlier.