News
SMIC Q3 Profits Rise Significantly Driven by Domestic Demand Shift
Tuesday, November 25, 2025 at 08:22 PM
Chinese chipmaker SMIC reported approximately 30% year-over-year profit growth for the third quarter, a result of domestic customers switching to Chinese suppliers. The company's performance is being buoyed by the ongoing US export restrictions and previous tariff policies.
Context
China's largest chipmaker, SMIC, reported strong third-quarter 2025 results on November 13, beating analyst estimates. For the quarter ending in September, net profit surged 28.9% year-over-year to $191.8 million, while revenue grew to $2.38 billion. The performance highlights the company's ability to capitalize on its unique market position.
The growth is primarily fueled by China's push for semiconductor self-reliance, as geopolitical tensions and U.S. export controls compel domestic clients to shift to local suppliers. This surge in demand from within China, which now accounts for 86.2% of revenue, pushed factory utilization to a high of 95.8%. However, SMIC issued a cautious outlook for the fourth quarter, forecasting nearly flat revenue growth and a drop in gross margin from 22% to a range of 18% to 20%, citing a product mix shift towards lower-margin consumer electronics chips.
Sources (16)
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