{"slug": "smic-weighs-more-capacity-as-ai-related-chip-demand-exceeds-forecasts", "title": "SMIC weighs more capacity as AI-related chip demand exceeds forecasts", "summary": "Semiconductor Manufacturing International Corporation (SMIC) is considering adding equipment at existing factories after demand for mature-node chips used alongside AI processors exceeded forecasts, with co-CEO Zhao Haijun saying future wafer starts are far exceeding expectations and orders for BCD power-management products visible through the end of 2027. The demand surge, driven by a global AI infrastructure boom, is causing shortages across AI-related supporting chips, and SMIC is operating close to its practical capacity limit.", "body_md": "# SMIC weighs more capacity as AI-related chip demand exceeds forecasts\n\nChina’s largest foundry says shortages are spreading to mature-node chips, with some AI-driven demand visible through the end of 2027\n\n[Howard Liu](/author/howard-liu)in Beijing\n\nSemiconductor Manufacturing International Corporation (SMIC) is actively looking at adding equipment in its factories after demand for mature-node chips used alongside AI processors surged beyond expectations, according to company management.\n\n[from its forecasts earlier this year,](https://www.scmp.com/tech/big-tech/article/3343139/chinas-smic-expects-flat-revenue-drop-low-end-orders-offsets-ai-chip-growth?module=inline&pgtype=article)driven by a global artificial intelligence infrastructure boom that was triggering shortages across AI-related supporting chips.\n\n“Future wafer starts are far exceeding our previous expectations,” co-CEO Zhao Haijun said during an earnings call, referring to the volume of new chip batches entering the production line.\n\nZhao said SMIC was adjusting its expansion plans and may install additional equipment at existing sites where space was available, with further details to be disclosed in upcoming announcements or briefings.\n\nDemand was particularly strong for supporting chips in AI servers and data centres – including logic chips, power-management products and optical module components. Orders for BCD (bipolar-CMOS-DMOS) power-management products were visible through the end of 2027, Zhao added.\n\n[The demand surge](https://www.scmp.com/tech/tech-trends/article/3363929/ai-demand-drives-triple-digit-quarterly-profit-growth-chinese-foundries-smic-hua-hong?module=inline&pgtype=article)comes as SMIC operates close to what management said was its practical capacity limit.", "url": "https://wpnews.pro/news/smic-weighs-more-capacity-as-ai-related-chip-demand-exceeds-forecasts", "canonical_source": "https://www.scmp.com/tech/big-tech/article/3363996/smic-weighs-more-capacity-ai-related-chip-demand-exceeds-forecasts?utm_source=rss_feed", "published_at": "2026-08-14 05:00:14+00:00", "updated_at": "2026-08-14 05:16:18.838327+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-chips"], "entities": ["Semiconductor Manufacturing International Corporation", "Zhao Haijun"], "alternates": {"html": "https://wpnews.pro/news/smic-weighs-more-capacity-as-ai-related-chip-demand-exceeds-forecasts", "markdown": "https://wpnews.pro/news/smic-weighs-more-capacity-as-ai-related-chip-demand-exceeds-forecasts.md", "text": "https://wpnews.pro/news/smic-weighs-more-capacity-as-ai-related-chip-demand-exceeds-forecasts.txt", "jsonld": "https://wpnews.pro/news/smic-weighs-more-capacity-as-ai-related-chip-demand-exceeds-forecasts.jsonld"}}