SMIC’s first-half net profit surges 94%—is the chip cycle finally warming up?
SMIC’s interim report is indeed quite eye-catching.
On August 27, the company released its 2026 first-half performance: revenue of RMB 38.635 billion, up 19.4%; and net profit attributable to shareholders of RMB 4.467 billion, up 94.2%.
More notably, the profit growth rate clearly outpaced revenue growth. The main drivers were an increase in wafer shipments, higher average selling prices, and changes in product mix. In the first half, wafer shipments rose 14.9% year over year to 5.379 million wafers.
The cash flow performance is also strong: cash flow from operating activities reached RMB 20.76 billion, up 252%.
In plain terms, this isn’t just “revenue rising”—it’s selling more and at better prices, with profits becoming more pronounced.
For the semiconductor industry, this signal is worth paying attention to.
If wafer demand continues to rebound and capacity utilization and product mix keep improving, there is still further room for SMIC’s earnings leverage to be released.
The real market upturn in the chip industry often doesn’t start when everyone is already calling it bullish, but when orders, prices, and profits all show a turning point at the same time.
This interim report, at least, lets the market see a fairly positive change: the business climate for domestically made wafer fabrication is moving upward$NVDA .$BTR $TAC #MAGMA #BICO #ARİA #BMT #GPS
SMIC’s interim report is indeed quite eye-catching.
On August 27, the company released its 2026 first-half performance: revenue of RMB 38.635 billion, up 19.4%; and net profit attributable to shareholders of RMB 4.467 billion, up 94.2%.
More notably, the profit growth rate clearly outpaced revenue growth. The main drivers were an increase in wafer shipments, higher average selling prices, and changes in product mix. In the first half, wafer shipments rose 14.9% year over year to 5.379 million wafers.
The cash flow performance is also strong: cash flow from operating activities reached RMB 20.76 billion, up 252%.
In plain terms, this isn’t just “revenue rising”—it’s selling more and at better prices, with profits becoming more pronounced.
For the semiconductor industry, this signal is worth paying attention to.
If wafer demand continues to rebound and capacity utilization and product mix keep improving, there is still further room for SMIC’s earnings leverage to be released.
The real market upturn in the chip industry often doesn’t start when everyone is already calling it bullish, but when orders, prices, and profits all show a turning point at the same time.
This interim report, at least, lets the market see a fairly positive change: the business climate for domestically made wafer fabrication is moving upward$NVDA .$BTR $TAC #MAGMA #BICO #ARİA #BMT #GPS
