Overview

• SMIC reported Q1 2025 revenue of $2.24 billion, a 28% year-on-year increase, and a 162% profit surge, but both figures fell short of market expectations.
• Shares of SMIC fell nearly 7% as the company forecasted a 4–6% sequential revenue decline for Q2, citing production variability and falling average selling prices.
• The company attributed its earnings shortfall to “production fluctuations” and geopolitical uncertainty tied to US-China trade tensions and export controls.
• First-quarter capacity utilization rose to 89.6%, driven by strong domestic demand, which accounted for over 84% of SMIC’s revenue.
• SMIC continues to face limitations in expanding advanced chip production due to US-led export restrictions on critical manufacturing equipment.