SMIC (00981) announced its unaudited fourth-quarter results for the three months ended December 31, 2025. The company achieved revenue of $2.489 billion, representing a 12.8% increase year-on-year and a 4.5% rise quarter-on-quarter. Profit attributable to the company's owners was $173 million, up 60.7% compared to the same period last year but down 9.9% from the previous quarter. Earnings per share were $0.02.

For the full unaudited year of 2025, profit attributable to the company's owners reached $685 million, a 39.1% increase compared to the full-year 2024 figure of $493 million. This growth was primarily driven by higher wafer sales, increased capacity utilization, and changes in the product mix.

In the fourth quarter, the company reported sales revenue of $2.489 billion, up 4.5% from the prior quarter, with a gross margin of 19.2%. Capacity utilization remained strong at 95.7%.

Throughout 2025, the semiconductor industry experienced restructuring effects due to the ongoing shift toward supply chain localization. According to unaudited financial data, the company's full-year 2025 sales revenue amounted to $9.327 billion, a 16.2% increase year-on-year. The gross margin for the year stood at 21.0%, up 3.0 percentage points from the previous year.

Capital expenditure for 2025 totaled $8.10 billion. By year-end, the company's monthly capacity in 8-inch equivalent wafers reached 1.059 million, an increase of approximately 110,000 wafers compared to the prior year. Total shipments were around 9.70 million wafers, with an average annual capacity utilization rate of 93.5%, an 8 percentage point improvement from the previous year.

Looking ahead to 2026, SMIC faces both opportunities from supply chain repatriation and challenges arising from the memory market cycle. Based on various factors, the company provided first-quarter guidance, expecting revenue to remain flat compared to the previous quarter, with a gross margin between 18% and 20%.

Assuming no significant changes in the external environment, the company's full-year 2026 guidance anticipates revenue growth to exceed the industry average, while capital expenditure is expected to remain broadly in line with 2025 levels.