Semiconductor Manufacturing International (HKG:0981, SHA:688981) warned that tightening memory supply could squeeze automotive and consumer-electronics output in 2026, Bloomberg News reported Friday.

Speaking on the company's post-earnings call, Co-Chief Executive Zhao Haijun said Chinese clients are becoming hesitant to place orders for early next year because they are unsure how much memory they can secure, according to the report.

He added that price increases driven by heavy AI-related demand are compounding the uncertainty.

"Be it carmakers, smartphones, or consumer electronics, everyone that uses memory is facing pressure from price hikes and supply constraints in the coming year," Zhao said in the call.

"Our customers are reluctant to place too many orders in the first quarter as they're not sure how many memory chips they can secure," he added.

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