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

Zhao Haijun, Co-CEO of SMIC, stated during the earnings conference regarding the outlook for 2026 that the company added approximately 50,000 pieces of 12-inch capacity in 2025 and will continue to expand production in 2026. Due to external environmental factors, the company has purchased some key equipment in advance, but the supporting equipment may not have been purchased yet, so the equipment already acquired may not be able to form complete production capacity this year. Based on the current situation, it is expected that by the end of this year, the monthly capacity increase will be equivalent to about 40,000 pieces of 12-inch wafers compared to the end of last year. He also pointed out that in order to seize the demand for local manufacturing, the company continues to invest heavily, which has driven rapid growth in the company's revenue scale but has also placed significant depreciation pressure on the gross profit margin. As the new factory begins to incur depreciation, it is expected that the company's total depreciation will increase by about 30% year-on-year in 2026. The company will tap into internal potential and strive to maintain high utilization rates and reduce costs to counteract depreciation pressure