中芯国际（688981.SH，00981.HK）2026年第二季度业绩说明会
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会议摘要
SMIC's Q2 2026 results show a 20% sequential revenue rise to $3.006 billion, driven by AI and data center chip demand. Gross margin improved to 25.3%, with Q3 growth projected at 2%-4% and margin between 26%-28%. Management reaffirmed confidence in future performance despite higher depreciation costs.
会议速览
SMIC's Second Quarter 2026 Results Presentation OverviewThis meeting focused on SMIC's results for the second quarter of 2026, and management made a financial presentation, emphasizing the nature and risks of forward-looking statements. The conference was broadcast live over the Internet and over the phone, allowing participants to interact during a question-and-answer session, with all financial data presented in accordance with IFRS.
Second Quarter and First Half of 2026 Financial Report and Third Quarter Performance OutlookThis includes key indicators such as revenue, gross margin, and profits, as well as asset-liability statements and cash flow. At the same time, performance forecasts for the third quarter are provided, with a 2-4 per cent increase in the pre-recorded income ring ratio and a gross interest rate of between 26 and 28 per cent.
SMIC's second quarter 2026 results are bright, with revenue and gross margin increasing.SMIC achieved sales revenue of US $3.006 billion billion in the second quarter, an increase of 20% from the previous quarter, and gross profit margin increased to 25.3, an increase of 5.2 percentage points year-on-year. Shipments and average sales unit price increased by 14.4 and 5.7, respectively, and capacity utilization remained high. Revenue is expected to grow by 2%-4% in the third quarter, with gross margin between 26%-28%. The company flexibly allocates production capacity and quickly verifies the new capacity to cope with the shortage of the industrial chain.
Analysis of SMIC's Strong Growth in the Second Quarter and Its Outlook for the Third QuarterThe dialogue focused on the sources of growth in SMIC's second quarter results, pointing out that the growth was mainly due to increased customer demand and capacity verification, especially the strong demand for AI supporting chips. At the same time, the reasons for the increase in gross margin in the third quarter, including the new price effect and depreciation impact, were discussed, and the importance of the uniform growth strategy of capacity and the balance of customer shipments was emphasized.
In-depth analysis of SMIC's foundry price increase strategy and market impactThe dialogue focused on SMIC's foundry price adjustment strategy, mentioning that it has negotiated several price increases with customers this year, mainly in areas of tight capacity, and the price increase is reasonable. The gross profit margin increased significantly in the first half of the year, of which the price increase contributed significantly. It is expected that the second half of the year will continue to negotiate prices with customers in areas where supply exceeds demand to maintain market competitiveness.
Demand for computing chips and data centers drives prices up.This paper discusses the tight demand and price rise in market segments such as computing chips and data center supporting chips, and points out that the surge in artificial intelligence investment and the withdrawal of overseas memory companies from special memory production lead to insufficient production capacity, which in turn affects the upward trend of mobile phone chips and display driver chips.
Industry Capacity Utilization and Demand Side Change AnalysisThe dialogue discussed the current industry capacity utilization and demand-side changes, pointing out that there is strong demand for power management in areas such as artificial intelligence and data centers, while demand for mobile phones and consumer panels is low and inventories are high. At the same time, the proportion of automotive and industrial products increased, reflecting the market's expectations for future demand growth in these areas. ZTE International and other enterprises have adjusted their shipping strategies, increased the supply of automobiles and industrial products, and reduced the shipment of mobile phones and consumer products, reflecting the trend of supply and demand balance adjustment in the industry.
Capacity Allocation and Pricing Strategies: Strategic Choices under Industry TrendsThe principle of energy distribution is discussed, with priority given to long-term strategic partners and pricing power when energy is in short supply. It is said that the price adjustment is based on the industry trend, and the price has not been increased in an all-round way, especially in the mobile phone consumer products to maintain stability, support customer demand and ensure the growth of business volume.
SMIC's EBITDA Margin Outlook and Depreciation Impact AnalysisThe dialogue discussed SMIC's excellent performance of EBITDA margin exceeding 70% in the second quarter. It is expected that the gross profit margin will continue to improve in the third quarter, but the depreciation ratio will remain high. Looking ahead, there is no possibility of price reduction this year, with capacity utilization remaining at 95% and 5% reserved for research and development. Price releases may come from consumer and mobile products, but the increase is limited. The increase in depreciation will affect EBITDA, but the increase in consumer prices will be partially compensated. Overall, the company is optimistic about maintaining good performance.
Detailed explanation of gross margin improvement strategy and capacity optimizationThe dialogue focused on the improvement of gross profit margin, focusing on the positive impact of capacity optimization and new production capacity on gross profit margin. It was pointed out that capacity optimization is not a simple product structure adjustment, but flexible allocation according to customer demand. The new capacity is based on customer orders in advance, thus ensuring product and price advantages and effectively relieving the pressure brought by depreciation growth.
Depreciation expense peak forecast in 2027 and the impact of the expansion plan.The growth in the company's depreciation expense is discussed, with total depreciation expected to be close to 5 billion for the year, up about 30% year-on-year, and depreciation is forecast to peak in 2027. Expansion plans and changes in market demand affect the uncertainty of depreciation peaks, emphasizing the importance of maintaining gross margin and competitive advantage in the expansion process.
BCD platform supply and demand tension and price trend analysis and simulation of the company's product differences.The supply and demand tensions and price trends of the BCD platform under the current boom are discussed, and it is pointed out that the demand for 8-inch wafers has surged, especially for high-voltage and high-current products. The differences in product type, voltage demand and customer relationship between different simulation companies are analyzed, and the scarcity of high-voltage product supply and the importance of long-term customer relationship are emphasized.
要点回答
Q：The company is now in which segments of the demand has become more intense, which applications can bring higher added value to the company?
A：According to the relationship between supply and demand, the demand for computing-related market segments and supporting chips (such as logic circuits, BCDs, optical modules, etc.) is particularly tight. In addition, the increased demand for artificial intelligence supporting chips overseas has led memory companies to reduce their investment in dedicated memory and other areas, which has further exacerbated the shortage of related chips. Tight production capacity is not limited to the field of artificial intelligence, but also includes mobile phones and display driver chips, and demand in these areas is also gradually picking up.
Q：Will SMIC take the initiative to cut energy or raise prices in the event of an industry downturn?
A：No, it won’t. SMIC operates in various tracks and adjusts capacity and pricing strategies based on market demand. For different application scenarios, SMIC subdivides it into 8 to 10 tracks, and may even further subdivide it into 6 to 7 scenarios. For customers, SMIC will support technology research and development and capacity demand in some aspects, while focusing on price and cost control in others. This year, SMIC has not significantly reduced production or increased prices in the consumer and mobile phone markets, and its turnover has continued to grow.
Q：What is SMIC's subsequent outlook for EBITDA margins?
A：Our outlook on EBITDA margin is divided into near-term and forward. At present, we have given guidance for the third quarter and received orders for the fourth quarter and the end of the year. We do not see the possibility of price cuts this year and expect to maintain current prices, gross margins and capacity utilization. Although depreciation expense will increase by approximately 30%, we can still maintain our EBITDA margin, but the increase will be affected by the increase in depreciation. In addition, due to tight production capacity, some prices may be released, especially for consumer, mobile phone and panel-driven products, but the price increase of these products will not be very large. Overall, EBITDA levels would have been sustainable without an increase in depreciation, but actual performance would have been lower and compensated for by the quarterly increase in depreciation and a partial increase in consumer product prices.
Q：What are the main contributors to the improvement in gross margin?
A：The gross profit margin in the second quarter reached a recent high, and the impact of positive adjustment factors was greater than that of product structure optimization. Capacity optimization is mainly reflected in the adjustment of capacity allocation, priority production of more needed and higher-priced products, such as logic circuits to MCU, special memory, etc., and the new capacity is based on the customer's demand for advance orders. This has led to a significant increase in gross margin.
Q：About depreciation expense and the expected peak time point?
A：We previously expected depreciation expenses to increase by about 30% year-on-year this year, depreciation in the first half of the year was about 2.3 billion, and the full year is expected to be close to 5 billion, the growth rate is in line with previous forecasts. As for the point in time when depreciation peaks, it was originally projected to peak depreciation in 2027 based on the project investment plan. However, due to changes in production expansion plans and market demand, there is uncertainty about when depreciation will peak in the future. We will determine future capital expenditures and depreciation based on adjustments to our expansion plans and market demand.
Q：How much is the current supply and demand situation of BCD platforms, price trend and other boom differences, and the impact of AI demand?
A：Currently, demand for the BCD platform continues to be strong and in short supply. The development of new industries such as artificial intelligence has driven the demand for advanced computing power and mature analog circuits, with the demand for 8-inch analog circuits growing faster than expected. The differences between different simulation companies are mainly reflected in the product voltage requirements and the historical cooperation basis with large customers. The supply of high voltage requirements (e. g., 48 volts) is relatively small and requires long-term validation. In addition, the ability to quickly acquire and meet the new needs of such large customers is also an important factor in distinguishing different simulation companies.
