Hua Er Jie Jian Wen·2025-12-23 14:00Core Viewpoint - SMIC has implemented a price increase of approximately 10% on certain production capacities due to rising demand in the semiconductor industry, driven by mobile applications and AI needs, as well as increased raw material costs [1][2]. Group 1: Price Increase and Demand - SMIC has raised prices on some production capacities by about 10% [1]. - The price increase is expected to be implemented quickly, following prior increases in storage product prices due to low pricing [2]. - The demand for semiconductor products is growing, influenced by the continuous rise in mobile applications and AI, which has led to increased demand for wafers [2]. Group 2: Capacity Utilization and Production - SMIC's capacity utilization rate rose to 95.8% in Q3 2025, up from 92.5% in Q2 2025, indicating strong demand [5]. - The overall production capacity remains in a state of supply shortage, with shipments unable to fully meet customer demand [6]. - Hua Hong's overall capacity utilization rate reached 109.5% in Q3 2025, reflecting high operational efficiency [8]. Group 3: Financial Guidance - SMIC's revenue guidance for Q4 indicates a flat to 2% growth compared to Q3, with a gross margin forecast of 18% to 20% [7]. - The company expects its annual sales revenue to exceed $9 billion, marking a significant milestone in revenue scale [7].