Chipmaker SMIC smashes estimates with 61% surge in Q4 profits

(Sharecast News) - State-owned Chinese semiconductor foundry Semiconductor Manufacturing International Corp smashed market forecasts with its fourth-quarter results on Tuesday, which showed a 61% surge in profits. The company, which is the largest contract chipmaker in the country, said net profits totalled $172.9m on a US dollar basis, up 60.7% over the year before and ahead of the $170.3m LSEG consensus forecast.

The bottom line improvement came despite a slip in gross margins to 19.2% from 22% in the third quarter.

Quarterly revenues increased 13% to $2.49bn, also above analysts' estimates. That pushed 2025 revenues as a whole to $9.33bn, ahead of the $8.03bn reported in 2024.

However, the company said that first-quarter sales would be more or less flat compared with the final three months of 2025, while gross margins would stay within the 18-20% range.

SMIC shares finished 1.7% higher at HK$71.55 in Hong Kong.