Zheng Quan Zhi Xing·2025-08-29 16:52Core Viewpoint - SMIC reported significant growth in revenue and profit for the first half of 2025, driven by increased wafer sales and improved average selling prices, positioning itself as a leading player in the global semiconductor foundry market [2][3][10]. Financial Performance - Revenue for the reporting period reached RMB 32.35 billion, a 23.1% increase from RMB 26.27 billion in the same period last year [3]. - Total profit amounted to RMB 3.63 billion, marking a 98.8% increase from RMB 1.82 billion year-on-year [3]. - Net profit attributable to shareholders was RMB 2.30 billion, up 39.8% from RMB 1.65 billion [3]. - EBITDA for the period was RMB 17.42 billion, reflecting a 26.5% increase compared to RMB 13.77 billion [3][10]. Operational Highlights - The company maintained a leading position in the global foundry market, ranking second worldwide and first in mainland China [7][10]. - The utilization rate of production capacity was industry-leading, with nearly 20,000 new 12-inch wafer monthly capacity added during the first half of 2025 [10]. - The company’s R&D investment as a percentage of revenue decreased to 7.3% from 10.0% in the previous year, totaling RMB 2.37 billion [3][12]. Industry Context - The semiconductor foundry industry is experiencing growth driven by demand in AI, smart devices, and automotive electronics, with a notable shift towards localized supply chains [6][7]. - The industry is characterized by high technical barriers, requiring significant capital investment and continuous innovation to maintain competitive advantages [7][9]. - SMIC is focusing on enhancing its technological capabilities and expanding its service offerings to meet diverse market demands [8][9]. Future Outlook - The company aims to continue its growth trajectory by focusing on operational excellence, product innovation, and deepening collaborations within the industry [10][11]. - Challenges such as geopolitical uncertainties and evolving market demands will be closely monitored as the company seeks to balance growth and stability [10].