SMIC Assesses Capacity Expansion Amid Surge in AI-Supporting Chip Demand

Semiconductor Manufacturing International Corporation (SMIC) is evaluating additional production capacity following a surge in demand for mature-node chips used alongside AI processors, according to company management.

China’s largest contract chipmaker reported on Friday that customer orders had increased significantly beyond earlier forecasts, driven by a global artificial intelligence infrastructure boom that has triggered shortages across AI-related supporting chips.

“Future wafer starts are far exceeding our previous expectations,” co-CEO Zhao Haijun said during an earnings call, referring to the volume of new chip batches entering the production line.

Zhao stated that SMIC is adjusting its expansion plans and may install additional equipment at existing sites where space permits, with further details to be disclosed in upcoming announcements or briefings.

Demand has been particularly strong for supporting chips in AI servers and data centres, including logic chips, power-management products and optical module components. Orders for BCD (bipolar-CMOS-DMOS) power-management products have been visible through the end of 2027, Zhao added.

The demand surge comes as SMIC operates close to what management described as its practical capacity limit.

Source link