SMIC faces price pressure from domestic competitors due to capacity ramp-ups aimed at countering US export restrictions, leading to declining profit margins and further price dips for commodity chips.
Zhao Haijun expects further price dips for standardized chips due to peers' new capacity, highlighting the trend of local chip production as seen in programs like the European Chips Act.
While AI drives demand and revenue growth in memory chips, the semiconductor sector faces oversupply risks linked to capacity expansion driven by geopolitical tensions.
SMIC anticipates industry capacity expansion peaking in the next two years but warns of potential underutilization of new capacity amid steady growth and increased competition.
[
add
]
[
|
|
...
]