Sou Hu Cai Jing·2025-07-30 13:11Core Viewpoint - SMIC is the largest and most advanced integrated circuit foundry in mainland China, focusing on providing comprehensive wafer foundry services and achieving breakthroughs in advanced processes [2][4]. Company Overview - Established on April 3, 2000, and headquartered in Shanghai, SMIC is one of the leading global integrated circuit foundry companies [2]. - The company was listed on the Hong Kong Stock Exchange in 2004 and on the Shanghai Stock Exchange's Sci-Tech Innovation Board in 2020, becoming the first "A+H" red-chip enterprise [3]. Historical Development - From 2000 to 2004, SMIC rapidly established multiple wafer production lines and went public in Hong Kong [8]. - Between 2005 and 2010, the company expanded through acquisitions, including Motorola's Tianjin plant and LFoundry, enhancing its capacity and technological capabilities [9]. - From 2011 to 2019, SMIC focused on technological breakthroughs, achieving mass production at the 28nm process, but faced slow progress in advanced processes due to international technology restrictions [10]. - Since 2020, following its listing on the Sci-Tech Innovation Board, SMIC has accelerated capacity expansion, aiming for a global market share of 6% by 2024, surpassing GlobalFoundries and UMC to become the third-largest foundry globally [10]. Business Operations - The main business of SMIC is integrated circuit wafer foundry, accounting for over 90% of its revenue [10]. - The company offers a diverse technology platform ranging from 0.35 microns to 14 nanometers, with a focus on mature processes of 28nm and above, and has achieved mass production in advanced processes like 14nm FinFET [12]. Market Position and Competition - In the global competitive landscape, TSMC holds a 62% market share, leading in advanced technology with 3nm mass production, while Samsung ranks second with 13% market share [14][15]. - SMIC ranks third with a 6% market share, but as a pure foundry, it is effectively the second-largest globally [16]. - The company benefits from local market demand, with over 80% of its business coming from China, and is gradually replacing imported shares due to local supply chain and policy support [13][19]. Financial Performance - For the latest reporting period, SMIC reported revenues of 57.796 billion RMB, a year-on-year increase of 27.7%, while net profit was 3.699 billion RMB, a decrease of 23.3% [20]. - The gross margin stands at 18%, with a capacity utilization rate of 85.6% [21]. - In 2024, the company plans to sell 8.02 million wafers (equivalent to 8-inch), a year-on-year increase of 36.7%, with an average selling price of 6,639 RMB per wafer [22]. Market Capitalization and Shareholder Structure - As of July 2025, SMIC's market capitalization exceeds 700 billion RMB in the A-share market and approximately 390 billion HKD in the Hong Kong market, with a total market value surpassing 1 trillion RMB [22]. - Major shareholders include Datang Holdings and the National Integrated Circuit Industry Investment Fund, holding about 15%-20%, while foreign institutional investors are gradually increasing their holdings [22]. Future Outlook - SMIC plans to increase its 12-inch wafer capacity by approximately 50,000 pieces annually over the next three to five years, with a total investment of around 7.5 billion USD, primarily for production equipment [22]. - The company aims to strengthen its position in mature processes while accelerating research and development in advanced processes to achieve sustainable long-term growth [22].