The composition of the quarter
On the day of the third-quarter 2026 results presentation, SMIC Co-CEO Zhao Haijun outlined the geographic breakdown of revenue: China accounts for 90.8% and the United States for 7.8%. In absolute terms, Chinese revenue grew 7% compared with the previous quarter, a trend the company attributes to demand from domestic customers growing faster than the company's overall growth, with a consequent redistribution of production capacity.
On the technology side, the breakdown by wafer size remained stable: 12-inch accounts for 79% and 8-inch for 21%. Both components grew in value, by 9% and 4% respectively quarter on quarter. The company explains the figure by sustained demand and capacity expansion concentrated on 12-inch lines.
The economic picture and stated priorities
The group's figures, published on 12 November and covering the first nine months of 2026, show revenue of 606.18 billion yuan, up 22.4% year on year, and net profit attributable to shareholders of 73.14 billion, up 91.6%. Operating cash flow is 286.25 billion. In the third quarter alone, revenue stands at 219.83 billion (+28.1% year on year) and profit at 28.47 billion (+87.6%), with operating cash flow of 78.66 billion. Earnings per share, basic and diluted, are stated at 0.91 yuan for the nine months and 0.33 yuan for the quarter.
In remarks reported by the specialist press, Zhao Haijun identifies two elements of certainty for the sector: demand linked to artificial intelligence, which in his view could lengthen the expansion phase of the semiconductor cycle by changing its structure and shape, and the continuation of the localization process across the entire supply chain. On this basis, the company aims to strengthen specialized and customized processes, supported by strategic ties with customers and the speed of innovation of Chinese operators.
Capacity, margins and open issues
The stated production strategy follows customer demand, with the goal of building an advantage through a portfolio of higher value-added products. The company also indicates its intention to keep EBITDA stable, which the text explicitly links to the ability to generate cash from operating activity, improving cost control and management efficiency to navigate the cycle with greater solidity.
Some aspects that the available material does not examine in depth remain to be clarified: the company does not quantify the additional capacity planned or the timing of the 12-inch expansion, does not detail profitability by individual product line and does not provide numerical guidance for the current quarter. The effect of artificial intelligence on company volumes is also presented as management's assessment, not as actual data. The co-CEO's indications should therefore be read as programmatic statements, distinct from the economic results already reported.
