The semiconductor supply chain for AI related applications is expected to remain tight through 2027, according to SMIC Co-CEO Zhao Haijun.
Dismissing the concerns of a bubble forming in the artificial intelligence (AI) industry, SMIC Co-CEO Zhao Haijun said that the industry is still in early stages and the demand remained strong. The Semiconductor Manufacturing International Corp (SMIC), China’s biggest contract chipmaker, said many customers needing computing resources still face shortages.
The semiconductor supply chain for AI related applications is expected to remain tight through 2027, according to Zhao. He added that the memory chip market will reach a supply-demand balance by the middle to end of 2028.
SMIC’s full year revenue is expected to reach $1.2 billion, while the year-on-year will rise by about 30 per cent in 2026, Zhao remarked. While the capacity utilisation continues to rise, the company’s capital spending may get affected due to longer lead times for equipment, with some orders taking as long as 24 months to deliver.
