According to ChainCatcher, SMIC Co-CEO Zhao Haijun said at the company’s third-quarter 2026 earnings conference on November 13 that AI development is driving computing demand beyond available supply. Industry consensus is that semiconductor foundry capacity will be very tight in 2027, with the shortage expected to last until mid-to-late 2028.

Zhao said AI-related memory demand could reach a basic supply-demand balance after mid-2028, while computing and other supporting chips may remain in short supply. Demand for wafers used in smartphones and mid- to low-end consumer products has weakened and may continue to decline.