Semiconductor Manufacturing International Corporation (981) Earnings Call Transcripts

Semiconductor Manufacturing International Corporation's Latest Earnings Call - Q1 FY2026

In the first quarter of 2026, Semiconductor Manufacturing International Corporation (SMIC) reported revenue of $2,505 million, reflecting a slight sequential increase of 0.7%. The gross margin improved to 20.1%, up 0.9 percentage points sequentially, while profit attributable to the company was $197 million. Management provided optimistic guidance for the second quarter, expecting revenue to increase by 14% to 16% sequentially and gross margin to range between 20% and 22%. This positive outlook, driven by strong demand for AI-related chips and capacity expansion, could potentially move the stock positively in the near term.

Reported metrics

Guidance from management

For the second quarter of 2026, SMIC expects revenue to increase by 14% to 16% sequentially and gross margin to be in the range of 20% to 22%. This guidance reflects management's optimism about demand and pricing improvements.

What management said

[Interpreted] Thank you, Dr. Zhao. Next is our Q&A session. Questions will be answered by Dr. Zhao and Dr. Wu. Chinese questions will be answered in Chinese. English questions will be answered in English. [Operator Instructions] I would now like to open up the call for Q&A. Operator, please assist.

What analysts pressed on

Analysts expressed concerns about the company's negative free cash flow and the decision not to distribute dividends for 2025. There were questions regarding the sustainability of growth amid ongoing capital investments and external market uncertainties.

Main topics on the call

• Revenue Growth and Guidance — SMIC reported first quarter revenue of $2,505 million, with management guiding for a sequential revenue increase of 14% to 16% in Q2 2026. Dr. Zhao noted, "We are more optimistic about our overall business performance fo...
• Gross Margin Improvement — The gross margin increased to 20.1%, up 0.9 percentage points sequentially, attributed to improved pricing and product mix. Management indicated that the margin is expected to rise further to between 20% and 22% in the n...
• Capacity Utilization and Expansion — Overall utilization rates decreased by 2.6 percentage points to 93.1%, impacted by the AI siphon effect and new fab capacity. However, the company added close to 9,000 12-inch equivalent capacity, indicating ongoing expa...
• Market Demand and Product Segmentation — Wafer revenue from AI supporting chips and other segments showed growth, with the company reallocating capacity to meet high demand. Dr. Zhao stated, "The revenue amount from 8 in increased by 6% sequentially, mainly bec...

Read the full Semiconductor Manufacturing International Corporation transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 25 Semiconductor Manufacturing International Corporation earnings call transcripts on record, spanning February 14, 2020 to May 15, 2026. Based on this history, Semiconductor Manufacturing International Corporation reports quarterly. The most recent call on file is dated May 15, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

981

Exchange

SEHK

Country

HK

Sector

Information Technology

Industry

Semiconductors and Semiconductor Equipment

Calls on record

25

First call

February 14, 2020

Most recent

May 15, 2026

Reporting cadence

quarterly