Semiconductor Manufacturing International Corp (SMIC) reported a surge in overseas orders during its Q1 2026 earnings call. Co-CEO Zhao Haijun stated that the global artificial intelligence boom is tightening manufacturing capacity at foreign foundries. International customers are consequently shifting orders for non-AI chips to Chinese manufacturers.
Global semiconductor firms are redirecting factory capacity toward high-demand AI products and high-bandwidth memory. This transition reduces available production for legacy products. SMIC is capturing a significant share of this redirected business as China’s largest domestic foundry.
The company forecasts strong double-digit revenue growth for the second quarter. Demand remains robust for SMIC’s power management and specialty memory chips. SMIC reported a capacity utilization rate of 93% for the first quarter.