SMIC Delivers Strong 2025 Performance with Strategic Execution
SMIC, a leading semiconductor manufacturing company, has released its operational and financial results for the fiscal year 2025. The report highlights substantial progress across multiple key business metrics, underscoring the company's growing market influence.
Robust Financial Growth
In 2025, SMIC recorded annual revenue of $9.327 billion, representing a solid 16.2% increase compared to the previous year. This growth was driven by sustained global demand for semiconductors and enhanced competitive positioning. Despite a significant rise in depreciation costs associated with capacity expansion, the company improved its gross margin to 21%, a 3-percentage-point year-on-year increase, demonstrating effective cost management.
Expanding Capacity and Higher Utilization
To meet market needs, SMIC consistently expanded its manufacturing footprint. By the end of 2025, its monthly capacity in 8-inch equivalent wafers exceeded 1 million units. The capacity utilization rate also rose sharply to 93.5%, up 8 percentage points from a year earlier, indicating strong operational efficiency and healthy customer demand.
Sustained Commitment to R&D
Innovation remains a core priority. SMIC maintained a high level of investment in research and development throughout 2025, with R&D expenditures totaling $774 million. This represents 8.3% of its total revenue, a ratio that leads the industry and supports the company's roadmap for advanced and specialized process technologies.
Strengthened Global Market Position
With this strong annual performance, SMIC has further cemented its rank as the world's second-largest pure-play semiconductor foundry. This achievement reflects not only scale expansion but also comprehensive capabilities in technology, operations, and market execution, providing a solid foundation for intensified global competition.