UB#SMIC RP2704D

SMIC's Zhao Haijun States HBM Shortage Will Continue

SMIC Warns Hastily Built AI Capacity May Face Risk of Idleness in the Future

SMIC Reveals Plans to Continue Production Expansion at Earnings Call

SMIC Warns of Soaring Depreciation Costs from Continued Expansion, Pressuring Gross Margin

Southbound capital recorded a net sell of HK$391 million in SMIC shares

SMIC CEO states that the effect of localizing the industrial chain will continue into 2026

SMIC adjusts capacity allocation to 应对存储超级周期

SMIC's Hong Kong Shares Fall Nearly 5% as Q4 Profit Misses Expectations

SMIC CEO Predicts Improvement in Consumer Electronics Memory Market in 2026Q3

Big Bank Rating: Lyon Says SMIC's Q4 Revenue Growth Exceeded Guidance, Rates 'Outperform'

SMIC to hold an Extraordinary General Meeting on February 12 to approve an asset purchase plan

SMIC Releases 2026 Earnings Guidance and Industry Analysis

Goldman Sachs Releases Earnings Analysis Report on SMIC and Gives Buy Rating

SMIC Co-CEO Zhao Haijun Provides Outlook on 2026 Capacity and Depreciation

Semiconductor Manufacturing International Corporation's (SMIC) 2026 Capacity Expansion and Dealing with Depreciation Pressure

SMIC Capex Exceeds Initial Expectations to Meet Strong Customer Demand

SMIC receives net southbound fund inflows for three consecutive days

SMIC Announces Full-Year 2025 Results with 16.2% Year-Over-Year Sales Revenue Growth

SMIC Announces Q4 2025 Results with a 23.2% Year-Over-Year Increase in Net Profit

SMIC to Hold Investor Briefing on February 11, with Market Focus on its Advanced Packaging Technology

TIMES UNI GP

CENTURY GINWA

STARGLORY HLDGS

RIDGE OUTDOOR

SYNAGISTICS

PROSP INV HOLD

HING LEE (HK)

ELEGANCEOPTICAL

CH ENV TECH&BIO

SHANGHAI QINGPU

688981

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SMIC Co-CEO Zhao Haijun revealed that the business in Q4 2025 is showing a "non-weak off-season" characteristic, with 12-inch capacity nearing full load. He pointed out that the strong demand for AI in storage has "squeezed" the mid-to-low-end markets such as mobile phones, leading to order differentiation, but high-end application orders have significantly increased. As a result, the company's capital expenditure in 2025 is expected to reach USD 8.1 billion, exceeding expectations, and plans to maintain a similar level of investment in 2026 to cope with the growth of mid-to-high-end and AI-related orders

- Semiconductor manufacturer SMIC reported a fourth-quarter sales revenue of $2.489 billion, a 4.5% quarter-on-quarter growth, and a capacity utilization rate of 95.7%.  
- CEO Zhao Haijun highlighted AI demand’s impact on the semiconductor supply chain, causing a squeeze on traditional markets, particularly in mid to low-end applications.  
- In response to strong market demand and an evolving order structure, SMIC’s capital expenditure for 2025 reached $8.1 billion, with similar investments planned for 2026 to maintain growth.

Wallstreetcn

SMIC

ChinaAMC Guozheng Semiconductor Chip ETF

Guotai CSI Semiconductor Material Equipment Theme ETF

Hwabao WP CSI HK Connect Information Technology Composite ETF

ICBCCS CNI HK Connect Technology ETF

ChinaAMC SSE STAR Semiconductor Material & Equipment Thematic ETF

XI2CSOPHSTECH

SMIC conference call: "12-inch wafers are nearing full capacity," AI drives up storage demand squeezing orders for mobile phones and others, with capital expenditure remaining at a high level of $8.1 billion this year

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On February 11th, the three major indices of the Hong Kong stock market rose slightly during the session, with the Hang Seng Technology Index leading the gains at 0.74%, showing a narrow range of fluctuations overall. In terms of sectors, the hardware and storage sectors performed strongly, with Xiaomi Group surging 4.38% driven by expectations of AI and new products; the internet sector showed divergence, with Bilibili rising 5.41% and Tencent Holdings falling 1.09%. In terms of individual stocks, Synagistics and Ridge Outdoor soared over 35% due to positive news. The current market is in a macro data vacuum period, with investor sentiment primarily cautious

- On February 11, Hong Kong's stock indices showed a slight overall rise, with investor sentiment remaining cautious amid a lack of macroeconomic data.  
- The Hang Seng Index increased by 0.25%, while the Hang Seng Tech Index led gains at 0.74%, although major indices stayed below recent highs.  
- Market focus shifted towards upcoming retail sales and trade data, as well as inflation and unemployment metrics, which are crucial for assessing economic resilience.

Market Heartbeat

TENCENT

BILIBILI-W

KUAISHOU-W

XIAOMI-W

LENOVO GROUP

BABA-W

MNSO

JD-SW

KB LAMINATES

JIAXIN INTL RES

CAM HS TECH

Huatai-PB CSOP Hang Seng Technology ETF(QDII)

Hang Seng TECH Index

ISHARESHSTECH

Xiaomi Corporation

CSOP HS TECH

XL2CSOPHSTECH

CAM HS TECH-U

Tianhong Hang Seng TECH ETF(QDII)

Hong Kong stock market intraday | Hang Seng TECH Index up 0.74%, hardware sector strengthens, Xiaomi surges 4.38%, Tencent down 1.09%

BABA

BABX

KBAB

The short selling amount in the Hong Kong stock market reached HKD 16.09 billion in the half-day session, accounting for 16.5% of the total shortable stock turnover of HKD 97.79 billion. The previous day was 17.1%. The main shorted stocks include: Southern Hang Seng Technology with a short selling ratio of 54.9% and a short selling amount of HKD 1.33 billion; Xiaomi Group-W with a short selling ratio of 13.1% and a short selling amount of HKD 660 million; Alibaba-W with a short selling ratio of 16.5% and a short selling amount of HKD 650 million; SMIC with a short selling ratio of 14.5% and a short selling amount of HKD 580 million; Tencent Holdings with a short selling ratio of 7.2% and a short selling amount of HKD 520 million

AASTOCKS

Alibaba

BABA 2x Long Daily ETF - GraniteShares

KraneShares 2x Long BABA Daily ETF

The short selling in the Hong Kong stock market for half a day was HKD 16.09 billion, accounting for 16.5% of the total turnover of shortable stocks

SMIC Co-CEO Zhao Haijun stated at the earnings conference that AI demand cannot be met for a certain period, and the shortage of HBM will continue for several years. The industry is heavily investing in storage technology, and future HBM capacity will be limited by the backend testing phase, rather than the frontend wafer production

SMIC Zhao Haijun: HBM shortages will continue

SMIC Co-CEO Zhao Haijun stated at the earnings conference that the monthly capacity increase this year is expected to be equivalent to approximately 40,000 12-inch wafers. The company plans to add about 50,000 12-inch capacity by 2025 and continue to expand production in 2026. Due to external environmental impacts, the company has purchased some key equipment in advance, but the supporting equipment has not yet arrived, which may prevent the formation of complete production capacity. The company will respond to high depreciation pressure by increasing utilization and reducing costs and improving efficiency, with total depreciation expected to increase by approximately 30% year-on-year in 2026

SMIC's Zhao Haijun: It is expected that the monthly capacity increase this year will be equivalent to approximately 40,000 12-inch wafers

The three major A-share indices showed mixed performance in the morning session, with the Shanghai Composite Index slightly up by 0.2%, the Shenzhen Component Index down by 0.07%, and the ChiNext Index down by 0.9%. The central parity rate of the RMB against the US dollar was adjusted to 6.9438, reaching a nearly five-month high. The People's Bank of China conducted reverse repurchase operations, with a net injection of 403.5 billion yuan. SMIC's stock price fell by 1.3%, while BYD rose by 1.8%

ChinaAMC CSI Auto Components Thematic ETF

BYD Company Limited

HFT CSI Auto Components Thematic ETF

Hwabao WP CSI Intelligent Electric Vehicle ETF

GTJA Allianz CSI All Share Semiconductors & Semiconductor Equipment ETF

BYD Company

GTJA Allianz SSE STAR Chip Design Thematic ETF

ChinaAMC CSI Hong Kong Connect Automobile Industry Thematic ETF

Guotai CSI 800 Automobile and Parts ETF

Guotai CSI All Share Integrated Circuit ETF

BYD COMPANY

Ping An CSI Auto Components Thematic ETF

Guotai CES Semiconductor Chip Industry ETF

E Fund CSI Auto Components Thematic ETF

The three major A-share indices of Shanghai and Shenzhen showed mixed performance in the first half of the day, with SMIC declining after earnings and BYD favored

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Below is Dolphin Research's curated Trans of SMIC's Q4 2025 earnings call. For our analysis, see 'SMIC: Doubling Down Against the Cycle — Are domestic AI chips the 'hope of the whole village'?' 1) 2026 outlook: Full-year revenue growth is set to outpace the peer avg. CAPEX in 2026 is expected to be roughly flat vs. 2025 ($8.1bn), while depreciation will rise materially, up approx. 30%.2) Industry backdrop: The market is showing clear bifurcation. On one hand...

SMIC (Trans): Street Too Bearish on Smartphones; Memory Shortage to Ease in Q3

The report from Citigroup indicates that SMIC's revenue in the fourth quarter of 2025 is expected to grow by 4.5% quarter-on-quarter to USD 2.49 billion, exceeding market expectations. The gross margin is 19.2%, which is at the midpoint of the guidance range. The revenue guidance for the first quarter of 2026 meets market expectations, but the gross margin is slightly below expectations. The company expects its full-year revenue growth in 2026 to be above the industry average, with capital expenditure guidance remaining the same as in 2025. Citigroup has set a target price of HKD 93.3 for SMIC's H shares and RMB 152 for its A shares, with a rating of "Outperform."

In the report by Citigroup, SMIC's first-quarter revenue guidance meets market expectations, while the gross margin guidance is slightly disappointing

On February 11th, the three major indices of the Hong Kong stock market showed a fluctuating stabilization trend during the trading session, with the Hang Seng Technology Index performing strongly, leading with a rise of 1.05%, indicating a rebound in investor interest in technology growth stocks. The Hang Seng Index slightly increased by 0.21% to 27,239.34 points. Sector performance was notably mixed: the hardware and storage sectors saw widespread gains driven by positive news from Xiaomi's business, with Xiaomi Group rising by 4.55%; the internet sector experienced mixed results, with Bilibili rising over 4% while Tencent saw a slight pullback; the semiconductor sector weakened across the board, with SMIC falling nearly 4%. Additionally, popular stocks Zhihu and Lexin Outdoor showed significant gains. The market is currently focused on the strength of macroeconomic recovery, awaiting further economic data guidance

- On February 11, Hong Kong's main indexes stabilized, with the Hang Seng Index at 27,239.34, rising 0.21%.  
- The Hang Seng Technology Index led with a 1.05% increase, reflecting a recovery in tech stocks, while the Enterprise Index also gained 0.21%.  
- Market focus remains on macroeconomic recovery and liquidity changes, with upcoming trade and retail data essential for assessing domestic demand and export resilience.

HUA HONG SEMI

DRINDA

KNOWLEDGE ATLAS

JLMAG

CNBM

VanEck Semiconductor ETF

Direxion Semicon Bull 3X

ChinaAMC Hang Seng Technology ETF(QDII)

iShares Semiconductor ETF

SPDR S&P Semicon

Tencent

Dacheng Hang Seng Technology ETF(QDII)

Hang Seng TECH ETF I

Huaan Hang Seng Technology ETF(QDII)

Hong Kong stock market intraday | Hang Seng TECH Index rose 1.05%, Xiaomi Group rose 4.55%, SMIC fell 3.91%

SMIC's co-CEO Zhao Haijun stated that capital expenditures are expected to significantly increase by 2026 to address market uncertainties and equipment replacement demands. The company needs to prepare capacity reserves in advance to face the challenges of accelerating industry capacity demand growth and extended equipment delivery times. Management emphasized that capacity expansion is a long-term plan, and increasing capital expenditures is the main reason for responding to potential demand growth in the future

E Fund CSI Semiconductor Material & Equipment Thematic ETF

Harvest CSI All Share Integrated Circuit ETF

Harvest SSE STAR Chip ETF

China Merchants CSI Semiconductor Industry ETF

Penghua Guozheng Semiconductor Chip ETF

SMIC: Preparing in advance to cope with market uncertainties, capital expenditures will significantly increase

In the earnings conference call of SMIC, Co-CEO Zhao Haijun stated that due to the increased demand from artificial intelligence, data centers, and the automotive market, the market landscape has changed, leading to a reduction in the effective production capacity of mass-market products. Some capacity has been reallocated, the demand for BCD technology has increased, and the exit of supply chains has also reduced the supply capacity of related products. A new trend in the pricing of mass-market products has emerged, and it is expected that prices will remain stable or slightly increase in the future

SMIC: Driven by demand from artificial intelligence and automobiles, the production capacity of consumer products may decrease and prices are likely to rise slightly

The Hang Seng Index opened 63 points higher, reporting at 27,246 points. WUXI BIO expects a 46.3% increase in net profit last year, with its stock price opening 3.54% higher; SMIC reported a net profit of USD 173 million in the fourth quarter of last year, with its stock price opening 2.3% lower. In the U.S. stock market, the Dow Jones rose slightly, while the S&P 500 and Nasdaq fell. Tech stocks showed mixed performance, with Tencent down over 1% and Alibaba slightly up. Southbound funds net bought HKD 84.8 million in Hong Kong stocks

- U.S. stocks showed mixed results, with the Dow Jones reaching a record high of 50,512 points, closing up 52 points or 0.1%.  
- The S&P 500 fell 23 points or 0.33%, while the Nasdaq decreased by 135 points or 0.59%.  
- Major tech stocks like Tesla increased by 1.89%, whereas others like Alphabet and Amazon experienced declines.

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China Southern Hang Seng Biotech ETF(QDII)

Hwabao WP Hang Seng SCHK Innovative Drug Select ETF

Tianhong CNI BIOMEDICINE ETF

ChinaAMC CSI Biotechnology Theme ETF

Huaan Hang Seng Biotech ETF

China Merchants CSI Biotechnology Theme ETF

E Fund CSI 300 Health Care ETF

WUXI BIO

ChinaAMC SSE STAR Biology and Medicine ETF

Guotai CSI Bio-medicine ETF

The Hang Seng Index opened 63 points higher, WUXI BIO rose 3.5% on positive earnings, and SMIC fell 2% | Hong Kong stock market opens

The Hong Kong stock market opened higher in the morning, with the Hang Seng Index opening up 63 points at 27,246 points. The automotive stocks performed well, with BYD opening up 1.3% and Nio opening up 1.7%. After releasing its earnings, SMIC opened down 2.4%, and China Literature expected an expanded loss, opening down 4%. In the technology sector, Tencent opened down 1.5%, while Alibaba opened up 0.5%. Among financial stocks, HSBC opened down 0.4%, and Standard Chartered opened down 2.5%

Invesco Semiconductors ETF

First Trust Nasdaq Food & Semicon

NIO-SW

Hua Xia CSI New Energy Vehicles ETF

"Hong Kong Stocks" Hang Seng Index opened high at 63 points, car stocks performed well, SMIC fell after earnings

Conference Minutes

VanEck HIP Sustainable Muni ETF

GlobalFoundries

Intel

INTEL-T

SMIC HK SDR 5to1

United Microelectronics

SMIC 4Q25- revenue up 4% q/q and 13% y/y to $2.489B; 9thstraight quarter of y/y growth; 19.2% GM due depreciation load; 96% utilization rate; QMar revenue to be flat- 1.1M wafer shipments at $2.4k ASP- $8.1B capex in ’25 vs $7.3B in ’24- 2026 capex to remain same; SMIC forecasts its ’26 rev to outgrow the segments it participatesSource: Sravan Kundojjala

Financial Analysis

SMIC (0981.HK/688981.SH) released its Q4 2025 results (quarter ended Dec 2025) after the HK close on Feb 10, 2026 (Beijing time). Key takeaways: 1) Headline results: revenue of $2.49bn, in line with consensus ($2.42bn), up 4.5% QoQ and above guidance (0–2% QoQ). QoQ revenue growth was driven mainly by restocking demand in consumer electronics ...

SMIC: Doubling Down in a Downcycle — The Last Hope for Homegrown AI Chips?

Wow! You have an extraordinary 90% rate!

The market is very choppy, more options will be good as implied volatility is high!

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🔥 IPO Pops, AI Hype, Data Storm: Monday Market Checklist | Feb 9, 2026

Amazon

MONTAGE TECH

Montage Technology

Direxion Daily AMZN Bull 2X Shares

Coinbase

Coreweave

Tesla

Alphabet - C

Alphabet

Meta Platforms

SPDR Gold Shares

iShares Silver Tr

Pro Ultr Silver

GLD SG

SMIC 4Q25 First Take: headline was mixed — revenue met expectations, but GPM underwhelmed. On the margin bridge, ASP rose by $37/wafer QoQ while unit cost increased by $56/wafer, driving GPM compression. While the company has pushed advanced nodes to a 7nm‑equivalent, lower yield continues to weigh on margins. Guidance matters more than the print, and the outlook remains muted. Management guides flat QoQ revenue vs. the Street at +3%, and GPM at 18–20% vs. the Street at 21%, implying continued margin pressure. Despite AI semis staying hot, results remain soft, largely due to a sluggish traditional semi market. Management is still cautious on the legacy demand recovery. Given SMIC’s unique positioning, valuation is not fully tethered to near‑term fundamentals. The company sits in the foundry industry’s second tier but is working to close the gap with TSMC, which keeps optionality and expectations alive. For more, follow Dolphin Research for subsequent commentary and Trans. $SMIC(00981.HK) $SMIC(688981.SH)

Taiwan Semiconductor

This week is much stronger overall than last week, but don't blindly chase highs.

股市江湖故事会

As much as I want to be bullish and hope stocks keep going up, I feel that the topping process is going on and a pullback is imminent. Stay safe!

Is betting on a Moon city smarter than funding the AI arms race? Explore key moves from Google, SpaceX, and Tesla, plus a major pharma lawsuit. Comment your view to earn task coins!

UB#SMIC RP2704D(63354.HK)

SMIC conference call: "12-inch wafers are nearing full capacity," AI drives up storage demand squeezing orders for mobile phones and others, with capital expenditure remaining at a high level of $8.1 billion this year

Hong Kong stock market intraday | Hang Seng TECH Index up 0.74%, hardware sector strengthens, Xiaomi surges 4.38%, Tencent down 1.09%

The short selling in the Hong Kong stock market for half a day was HKD 16.09 billion, accounting for 16.5% of the total turnover of shortable stocks

SMIC Zhao Haijun: HBM shortages will continue

SMIC's Zhao Haijun: It is expected that the monthly capacity increase this year will be equivalent to approximately 40,000 12-inch wafers