SMIC Q3 Profit Jumps 123%, Revenue Rises 34%

Chinese chipmaker SMIC’s third-quarter results beat analyst expectations, with revenue and net profit rising year over year as wafer shipments increased and factory utilization improved. Gross margin also expanded, though the company forecast a lower margin in the fourth quarter even as it expects sequential revenue growth. The results are being viewed as a signal of domestic Chinese foundry demand, supported by localization efforts, while US export restrictions limit SMIC’s access to advanced equipment and nodes. Investors are also watching capacity spending, utilization and margin trends, as well as the risk that further export-control tightening could constrain the company and weigh on the broader semiconductor supply chain.