Semiconductor Manufacturing International Corporation (SMIC) posted a robust financial performance for the first half of 2026, with net profit attributable to shareholders surging 94.2% year-on-year to 4.467 billion yuan. The company's revenue for the period reached 38.635 billion yuan, marking a 19.4% increase from the prior year.
According to the interim report released after market close on August 27, SMIC's non-GAAP net profit, excluding non-recurring items, climbed 57.2% to 2.994 billion yuan. The gross margin improved by 1.3 percentage points to 23.2%, while net cash flow generated from operating activities skyrocketed 252.0% to 20.760 billion yuan.
The company attributed the significant growth in total profit, net profit attributable to shareholders, non-GAAP net profit, and EBITDA primarily to higher wafer shipment volumes, increased average selling prices, and a favorable shift in product mix. Management noted that demand for AI-related chips remained robust during the reporting period, overseas orders rebounded, and localized manufacturing continued to strengthen, resulting in a substantial order backlog.
In product categories facing supply shortages, SMIC successfully negotiated price increases with customers, and the effects of these price adjustments are gradually becoming evident. The company invested a total of 2.725 billion yuan in research and development, accounting for 7.1% of revenue. As of June 30, 2026, SMIC had accumulated 14,784 authorized patents, including 12,891 invention patents.
From a business structure perspective, SMIC's main business revenue reached 38.027 billion yuan in the first half, up 18.9% year-on-year, with wafer foundry revenue contributing 35.858 billion yuan, an increase of 18.1%. Geographically, revenue from China accounted for 89.6% of total revenue, a notable rise from 84.2% in the same period last year, while revenue from the United States represented 8.7%.
Within the integrated circuit wafer manufacturing foundry revenue, consumer electronics accounted for 45.1%, smartphones for 17.8%, and industrial and automotive applications for 15.4%. EBITDA for the period reached 24.511 billion yuan, up 40.7% year-on-year.
SMIC, recognized as one of the world's leading integrated circuit wafer foundries, provides 8-inch and 12-inch wafer foundry and technology services to global customers. Based on the latest 2025 sales figures published by global pure-play wafer foundries, SMIC ranks second worldwide.
Looking ahead to the second half of the year, the company expressed optimism about industry trends and its own development prospects, citing the continued industrial push and spillover effects of artificial intelligence, which are expected to generate broad demand for integrated circuit manufacturing.
In terms of stock performance, SMIC's share price has experienced a volatile trajectory this year. The stock closed at 129.95 yuan on January 5, subsequently rose to an intraday high of around 176 yuan, and then retreated. As of August 27, SMIC's share price has gained 2.85% since the start of the year.
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