1002 GMT - SMIC's 3Q gross-margin recovery is encouraging but likely to remain in the high teens due to heavier depreciation and ramp-up costs, DBS analyst Jim Au says in a research note. Although 4Q revenue may be tempered by customers' year-end inventory adjustments, fab utilization should stay elevated, he adds. The analyst reckons that although tighter export restrictions on advanced tools have limited SMIC's progress on leading-edge technologies, they reinforce its position as China's only domestic advanced-node foundry. DBS reiterates the company's strategic importance to China's semiconductor ambitions, even as near-term margins and returns remain modest versus global peers. The brokerage maintains a buy rating on SMIC's H-shares, but trims its target price to HK$88.80 from HK$90.00. Shares last closed at HK$73.50. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

November 14, 2025 05:02 ET (10:02 GMT)

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