Q1 2026 Semiconductor Manufacturing International Corp Earnings Call Transcript
Key Points
- Revenue for the first quarter of 2026 was $2,505 million, marking a sequential increase of 0.7%.
- Gross margin improved by 0.9 percentage points to 20.1%, driven by increased pricing and an improved product mix.
- The company anticipates a revenue increase of 14% to 16% sequentially for the second quarter of 2026.
- Strong demand for AI-supporting chips has driven growth in the company's power management capacity.
- The company has a comprehensive automotive-grade process portfolio, which is seeing strong market demand.
- Overall utilization rate decreased by 2.6 percentage points sequentially to 93.1%.
- The company reported negative free cash flow after deducting capital expenditure from operating cash flow in 2025.
- The decision not to distribute profits for the year 2025 may not align with some shareholder expectations.
- The global macroenvironment presents numerous uncertainties, posing challenges to supply chain costs and stability.
- The company's capacity could not fully meet demand for BCD, logic, and embedded memory business, indicating potential supply constraints.
Welcome to Semiconductor Manufacturing International Corporation's first-quarter 2026 webcast conference call. Today's call will be simultaneously streamed through the Internet and telephone. (Operator Instructions)
Without further ado, I'd like to introduce Ms. Guo Guangli, Senior Vice President and Board Secretary, to host the webcast.
Greetings. Welcome to SMIC's first-quarter 2026 webcast conference call. Attending today's call are Dr. Zhao Haijun, Co-Chief Executive Officer; Dr. Wu Junfeng, Senior Vice President and Person-in-Charge of Finance.
Let me remind you that today's presentation contains forward-looking statements that do not guarantee future performance but represent the company's expectations and are subject to inherent risks and uncertainties. Please refer to the forward-looking statements in our earnings announcement.
Please note that today's earnings statement is presented in accordance with
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