Hang Seng·SSE50 · foundry · China's largest
SMIC
China's largest semiconductor foundry, running DUV-based mature and legacy processes since US export controls cut off EUV. It sources tools from Applied, Lam and Tokyo Electron (minus EUV) while widening substitution with domestic equipment (Naura, AMEC, ACM) to build a sanctions-resilient supply chain. Its main customers are Chinese fabless firms, and with the National IC Fund as its largest shareholder it is a strategic national asset for semiconductor self-sufficiency.
0981.HK Updated Jul 12, 2026 3 AI consumers· 2 recurring
Per the valuechain.wiki graph, SMIC is directly linked to 13 companies (9 supply, 4 revenue relationships) and reaches 25 companies within two hops; the links are backed by 16 dated sources, 5 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · RMB 67.32bn ($9.33B, 2025 consolidated, +16.5%, record)
- Customer concentration · A mature/legacy (DUV) foundry — China 89%, 12-inch 77%, 93.5% utilization; 9.697M 8-inch-equivalent wafers shipped (+20.9%). Under EUV curbs 7nm yields pressure margins, but state-fund support (Big Fund 23.08% in 2020, trimmed to ~8% by early 2026) grows mature-node capacity to absorb Chinese fabless localization — a national-strategic asset. Skipped its dividend for expansion; net profit +36%.
- Segments · Consumer electronics (46%) · Smartphone (19%) · PC & tablet (14%), industrial & auto (14%) · Connectivity & wearables (7%)
Revenue from
- Hygon High confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Manufactures Hygon x86 CPUs and DCUs.Confirms EN SCMP Published Mar 13, 2026: Hygon and Sugon post revenue surge on AI boom and self-reliance - Chinese fabless (undisclosed) Medium confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Supplies legacy foundry to Chinese fabless firms.Confirms EN TrendForce Published Feb 11, 2026: SMIC posts record RMB 67.3bn ($9.33B, +16.5%) in 2025; utilization 93.5% - GigaDevice Medium confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Manufactures GigaDevice NOR flash and MCUs.Confirms EN DigiTimes Published Mar 31, 2026: GigaDevice posts record 2025 earnings, locks in $825M DRAM supply - Cambricon Medium confidence
Manufactures Cambricon AI accelerators (Siyuan 590/690) on SMIC's N+2 (7nm) DUV process — Cambricon's annual report anonymizes its top supplier, but media identify it as SMIC (yield ~20%). Export controls concentrate domestic-foundry demand on SMIC, though the name rests on media.Confirms EN TrendForce Published Dec 15, 2025: TrendForce — Cambricon Siyuan 590/690 on SMIC N+2 (7nm), yield limits - Qualcomm Low confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Supplies legacy foundry to Qualcomm.
Pays to
- AMEC High confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Sources CCP/ICP etch tools from AMEC. - ACM Research High confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Sources wafer-cleaning tools from ACM Research.Confirms EN SemiAnalysis Published Jan 1, 2026: ACM Research wins at SK Hynix and Intel (China top equipment) - Naura Technology High confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Sources etch/deposition tools from Naura. - Tokyo Electron (TEL) Medium confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Purchases front-end equipment (DUV) from Tokyo Electron. - Applied Materials Medium confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Purchases front-end equipment (DUV) from Applied Materials. - Lam Research Medium confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Purchases front-end equipment (DUV) from Lam Research. - Synopsys Medium confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Pays for synopsys EDA tools and IP licenses. - Siemens EDA Medium confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Pays for Siemens EDA (Calibre etc.) licenses. - Cadence Design Systems Medium confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Pays for cadence EDA tools and IP licenses. - equipment & infrastructure (undisclosed) Low confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Equipment and infrastructure (undisclosed). - wafers · materials (undisclosed) Low confidence· Amount ¥67.3B · SMIC FY2025 매출 컨텍스트
Parts, materials and R&D (undisclosed).
Investors
- China National Integrated Circuit Fund (Big Fund) etc. High confidence· Market share 23.08% · 2020 취득(2026 ~8%로 축소)
State capital led by the China IC Fund (Big Fund) is the axis of ownership — the Big Fund took 23.08% of SMIC in 2020 and, after a share issuance for the SMNC subsidiary acquisition in 2025, held a third-largest stake before trimming to ~8% in early 2026. With the Shanghai fund and others, state shareholders underpin capex and localization policy.
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| LG Electronics | lead2 | -16.2 | -20.9 | -5.8 | -9.5 | +19.2 | +85.5 |
| Kyocera | lead2 | +7.5 | -2.1 | +33.8 | -24 | +46.7 | +63 |
| Apple | lead2 | +34.6 | -26.4 | +49 | +30.7 | +9.1 | +16.2 |
| Xiaomi | lead2 | -43.9 | -21.1 | -4.6 | +209.7 | -6.9 | -27.2 |
| GigaDevice | lead1 | +7.3 | -17 | -45.1 | +103.8 | +147.9 | +94.6 |
| Cambricon | lead1 | -48.7 | -21.2 | +77.1 | +420 | +120.1 | +65.9 |
| Hygon | lead1 | · | · | +54.2 | +93.4 | +106.9 | +33.6 |
| Qualcomm | lead1 | +22.3 | -38.6 | +35.1 | +8.3 | +13.8 | +11.7 |
| SMIC | node | -29.6 | -7.4 | -18.3 | +169.9 | +98.4 | +5.6 |
| ACM Research | benef1 | +4.9 | -72.9 | +153.4 | -22.7 | +161.3 | +161.1 |
| Applied Materials | benef1 | +83.6 | -37.5 | +68 | +1.1 | +59.6 | +135 |
| Lam Research | benef1 | +53.7 | -40.7 | +88.6 | -6.8 | +139.2 | +105 |
| AMEC | benef1 | -22.7 | -11.6 | +8.9 | +58.3 | +93.5 | +86.3 |
| Tokyo Electron (TEL) | benef1 | +40.4 | -14.5 | +89.8 | -4.4 | +61.6 | +78.2 |
| Naura Technology | benef1 | +41.3 | -17.2 | -2.6 | +65.9 | +70.6 | +68.7 |
| Cadence Design Systems | benef1 | +36.6 | -13.8 | +69.6 | +10.3 | +4 | +22.9 |
| Synopsys | benef1 | +42.1 | -13.4 | +61.3 | -5.7 | -3.2 | -5.2 |
| Ichor Holdings | benef2 | +52.7 | -41.7 | +25.4 | -4.2 | -42.8 | +444.2 |
| MKS Instruments | benef2 | +16.4 | -51 | +22.6 | +2.2 | +54.4 | +131 |
| Advanced Energy Industries | benef2 | -5.7 | -5.4 | +27.5 | +6.6 | +81.6 | +47.2 |
| SMC Corporation | benef2 | +0.9 | +4.5 | +28.6 | -28 | +4.2 | +26.6 |
| Wonik QnC | benef2 | +26.2 | +2 | +11.9 | -33.7 | +53.4 | +9.3 |
| Siemens AG | benef2 | +12.2 | +5.1 | +20.1 | +28 | +26.4 | +8.7 |
| TCK (Tokai Carbon Korea) | benef2 | -10.1 | -16.9 | +2.8 | -28.7 | +225.7 | -2.5 |
| Hana Materials | benef2 | +106 | -30.5 | +26.1 | -47.4 | +173.9 | -15.7 |
YTD as of 2026-07-10 · source: Yahoo Finance
The thesis is prime leverage to — and the limits of — the China mature-process self-sufficiency that sanctions created. Cut off from EUV, its leading edge stops at 7nm, but it aggressively expands mature/legacy (DUV) capacity with state-fund backing (National IC Fund ~23%) to absorb domestic outsourcing demand from Chinese fabless firms (Hygon, Cambricon, GigaDevice). As it substitutes Applied/Lam/TEL dependence with domestic Naura/AMEC/ACM tools, localization progress sets the ceiling on capacity expansion. The risks are mature-node oversupply and falling utilization, plus the chance that further sanctions narrow Western tool and EDA access.
Analysis generated from returns as of 2026-07-10Analyst ratings
Consensus: Buy 3 · Hold 0 · Sell 0 · Avg. target HK$107 · Price HK$79.65 (07-10) · Upside +34%
Analyses covering this node
- Export controls wind China's chain clock: the makers rise, not the buyers Jul 10, 2026
- China replicates the chain in parallel: the second map that sanctions drew Jun 23, 2026