semiconductor / advanced process nodes / 2nm

Sherry Qin / Wall Street Journal : SMIC reports Q1 revenue up 11.5% YoY to ~$2.5B and net profit up 5% YoY to ~$197.4M, below $223.6M est., weighed down by higher operating expenses, up 30% YoY — It sees scope for momentum to pick up in the second quarter — SMIC, China's biggest chip foundry, reported weaker …

SMIC reported Q1 2026 revenue of RMB 17.617 billion (USD 2.505 billion), up 8.1% year-over-year, and net profit attributable to shareholders of RMB 1.361 billion, up 0.4% YoY. Adjusted net profit rose 5.3% to RMB 1.232 billion, operating cash flow turned positive to RMB 5.132 billion, and R&D spending climbed 21.5% to RMB 1.299 billion (7.4% of revenue). Gross margin was 20.1% (up 0.9 pp quarter-on-quarter). Management guided Q2 revenue growth of 14–16% quarter-on-quarter and a gross margin target of 20–22%, citing stronger customer demand and on-hand orders. The results signal cautious but improving financial performance and continued investment in R&D amid rising wafer demand.

Semiconductor manufacturer SMIC reported 1Q2026 revenue of CNY 17.617 billion, up 8.1% year-over-year, with net profit attributable to shareholders of CNY 1.361 billion, a 0.4% increase. The quarterly earnings release signals modest top-line growth and near-flat profitability amid ongoing global chip demand shifts and geopolitical pressures affecting China’s semiconductor supply chain. As one of China’s leading foundries, SMIC’s results matter for supply, capacity planning, equipment vendors, and domestic tech supply-chain strategies, offering a data point on how Chinese chipmakers are navigating export controls, investment cycles, and demand for mature-node manufacturing.