SMIC Q3 Revenue Rises, Gross Margin Improves

Semiconductor Manufacturing International Corporation (SMIC) reported a 6.1% sequential increase in revenue to $3.19 billion for the third quarter of 2026, signaling continued growth in the foundry’s core business. The results, released November 12, demonstrate an improvement in profitability alongside increased production capacity.

The reported revenue represents an increase from $3.0056 billion in the second quarter of 2026 and a more substantial 34.3% jump from $2.3818 billion in the third quarter of 2025. This growth was primarily attributed to a rise in wafer shipments during the period. Importantly, the company also saw a significant improvement in its gross margin, which reached 29.9% in Q3, a 4.6 percentage point increase from 25.3% in the previous quarter. This margin expansion is attributed to both increased utilization rates and a change in the company’s product mix.

Alongside the positive financial performance, SMIC disclosed a minor increase in its issued share count related to the exercise of restricted share units granted under its 2014 Equity Incentive Plan. 13,410 new shares were issued, representing a negligible 0.00016% increase to the total outstanding shares. A further disclosure details shares traded on the Shanghai Stock Exchange, which remain constant. The company’s capacity also expanded to 1,116,750 standard logic 8-inch equivalent wafers in the third quarter, up from 1,096,500 in the second.

Looking ahead, SMIC anticipates revenue to increase by 4% to 6% sequentially in the fourth quarter, with a projected gross margin in the range of 26% to 28%. While the company is expanding capacity to meet customer demand and focusing on high-value-added products, the guidance suggests a moderate deceleration in margin improvement as the year closes.