Semiconductor Manufacturing International Corporation

Semiconductor Manufacturing International Corporation (SMIC) is China's leading contract chipmaker. The company is currently experiencing a surge in orders, particularly for mature-node semiconductors. This increased demand is largely attributed to the global AI boom, which has driven overseas rivals to prioritize high-margin AI chips and high-bandwidth memory. Consequently, this shift has created a shortage in mature-node capacity, benefiting Chinese foundries like SMIC. SMIC, along with Hua Hong Semiconductor, has forecast second-quarter growth, reflecting the dynamic global market influenced by AI demand and a memory supply crunch. The company's relevance is heightened as it benefits from this capacity crunch, potentially easing the impact of US export controls as the market seeks alternative suppliers for essential semiconductor components.