Xin Lang Cai Jing·2026-02-10 13:24Core Viewpoint - SMIC reported its Q4 2025 financial results, showing a solid revenue growth but a decline in profit margins due to increased depreciation costs [2][3][10]. Financial Performance - Q4 2025 sales revenue reached $2.489 billion, a 4.5% increase quarter-over-quarter and a 12.8% increase year-over-year [2][8]. - Net profit attributable to shareholders for Q4 2025 was $173 million, down 9.9% from the previous quarter but up 60.7% year-over-year [3][9]. - The gross margin for Q4 2025 was 19.2%, down from 22.0% in Q3 2025 and 22.6% in Q4 2024, attributed to increased depreciation [3][9]. Annual Overview - For the full year 2025, SMIC achieved a record sales revenue of $9.327 billion, a 16.2% increase year-over-year [10]. - The annual net profit attributable to shareholders was $685 million, a 39.1% increase compared to 2024, driven by increased wafer sales and higher capacity utilization [10]. Production Capacity - By the end of 2025, SMIC's monthly capacity for 8-inch standard logic reached 1.059 million wafers, an increase of approximately 110,000 wafers year-over-year, with total shipments around 9.7 million wafers [11]. - The average capacity utilization rate for 2025 was 93.5%, an 8 percentage point increase year-over-year, with Q4 2025 utilization at 95.7% [11][12]. Revenue Breakdown - In Q4 2025, revenue from the China region accounted for 87.6%, with increases in consumer electronics, industrial, and automotive sectors, while computer and tablet, as well as wearable device revenues, saw declines [12]. - Revenue by application in Q4 2025: smartphones at 21.5%, computers and tablets at 11.8%, consumer electronics at 47.3%, wearables at 7.2%, and industrial and automotive at 12.2% [13]. Capital Expenditure and Future Outlook - SMIC's capital expenditure for 2025 was $8.1 billion, reflecting ongoing investments in production capacity [13]. - Looking ahead to Q1 2026, SMIC expects stable sales revenue and a gross margin between 18% and 20%, with anticipated revenue growth exceeding industry averages [13]. Strategic Developments - SMIC is in the process of acquiring a 49% stake in its subsidiary, SMIC North, for approximately 40.6 billion yuan [14]. - The company, in collaboration with the National Integrated Circuit Fund, plans to invest about $7.78 billion in SMIC South, focusing on advanced process technologies [14].