Xuan Gu Bao·2025-11-13 23:42Core Insights - SMIC reported a revenue of 49.51 billion yuan for the first three quarters, representing an 18.2% year-on-year increase, and a net profit of 3.82 billion yuan, up 41.1% year-on-year [1] - In Q3, the company achieved a revenue of 17.16 billion yuan, a quarter-on-quarter increase of 6.9% and a year-on-year increase of 9.9%, with a net profit of 1.52 billion yuan, up 43.1% year-on-year [1] Group 1: Financial Performance - The increase in net profit is attributed to a rise in wafer sales and changes in product mix [2] - The company is positioned as the leading wafer foundry in mainland China with advanced process technology [2] Group 2: Market Position and Growth Potential - SMIC's global market share is expected to rise from 5.3% in 2023 to 6% in 2024, moving from the 5th to the 3rd position globally [2] - The company aims to focus on advanced processes such as 7nm and 5nm technology [2] Group 3: Industry Trends and Supply Chain - Long-term growth for SMIC is anticipated to be strong, driven by Chinese IC design companies and trends in artificial intelligence [2] - The domestic semiconductor equipment sector is crucial for the expansion of wafer foundries, with ongoing efforts to reduce reliance on foreign technology [2] Group 4: Company Relationships - Zhaoxin provides one-stop services from chip specification to finished products, primarily sourcing wafer foundry services from SMIC, which holds a 14.23% stake in Zhaoxin [3] - Shengjian Technology specializes in semiconductor process waste gas treatment and has a long-term service relationship with SMIC [4]