2 1 Shi Ji Jing Ji Bao Dao·2025-09-20 00:17Core Viewpoint - SMIC (Semiconductor Manufacturing International Corporation) is experiencing a significant rise in its market value, recently surpassing 1 trillion RMB, driven by advancements in domestic chip manufacturing and increasing demand for AI-related applications [1][2][19]. Group 1: Company Performance and Market Position - As of September 19, 2025, SMIC's A-share price closed at 121.34 RMB, with a total market value of 970.63 billion RMB, reflecting a 30.47% increase since the beginning of the year [1]. - The company's A-share price-to-earnings ratio exceeds 200, significantly higher than TSMC's ratio of less than 20 [1]. - SMIC has become the only wafer foundry in mainland China capable of mass production with advanced process technology, marking a substantial leap in China's chip manufacturing capabilities [1][2]. Group 2: Key Events Timeline - July 2020: SMIC went public on the STAR Market, raising 53.23 billion RMB, with a market value of 613.7 billion RMB on the first trading day [7]. - December 2020: The U.S. placed SMIC on the Entity List, imposing export restrictions, which initially caused a drop in stock price but was countered by domestic policy support [8][9]. - March 2021: SMIC reported a revenue of 27.47 billion RMB, a 39% increase year-on-year, and a net profit of 4.33 billion RMB, a 142% increase, boosting market confidence [9]. - July 2022: Reports indicated that SMIC achieved advanced chip production without overseas equipment, marking a significant milestone [10]. - September 2025: SMIC's market value crossed the 1 trillion RMB mark, driven by various factors including asset consolidation and improved market sentiment [15]. Group 3: Industry Dynamics and Future Outlook - The semiconductor industry is currently in a down cycle, but SMIC's domestic market demand is expected to ensure its production capacity remains viable [16]. - Analysts predict that the demand for AI applications will drive long-term growth for SMIC, with expectations of increased utilization rates and pricing power for wafer foundries [19][20]. - SMIC's revenue for the first half of 2025 reached 32.35 billion RMB, with a net profit of 1.9 billion RMB, reflecting a 47.8% year-on-year increase [25]. - The company is also undergoing asset consolidation, planning to acquire a 49% stake in its subsidiary, SMIC North, which specializes in mature process technologies [28].