SMIC (Semiconductor Manufacturing International Corporation), China's largest foundry, grew its revenue 20.0% quarter-over-quarter to $3,005.588 million in the second quarter of 2026. This marks the first time its quarterly revenue has exceeded $3 billion. According to figures published by TrendForce on September 9, SMIC held onto third place globally, with the gap to second-place Samsung Foundry narrowing to roughly $250 million.
However, this is not the first time SMIC has ranked third. The demand driving this revenue growth spans a wide range—from front-loaded procurement of PCs to AI-adjacent ICs and server networking products. It also includes contract manufacturing of flash memory. Breaking down the 20% growth into shipment volume versus unit price and product mix reveals why SMIC's approach to Samsung and its technological competition with TSMC cannot be treated as the same story.
Behind the 20% Revenue Growth: A 14.4% Rise in Shipments Plus Price and Product Mix Shifts
SMIC's revenue grew from $2,505.487 million in the first quarter to $3,005.588 million in the second quarter. Over the same period, wafer shipments—measured in 8-inch equivalent standard logic wafers—rose 14.4%, from 2,509,137 wafers to 2,869,495 wafers. Monthly production capacity increased only 1.7%, from 1,078,250 wafers to 1,096,500 wafers, while capacity utilization rose from 93.1% to 93.7%.
| SMIC Metric | Q1 2026 | Q2 2026 | QoQ Change |
|---|---|---|---|
| Revenue | $2,505.487 million | $3,005.588 million | +20.0% |
| Wafer Shipments | 2,509,137 wafers | 2,869,495 wafers | +14.4% |
| Capacity Utilization | 93.1% | 93.7% | +0.6 pts |
| Monthly Production Capacity | 1,078,250 wafers | 1,096,500 wafers | ~+1.7% |
| Wafer Revenue ÷ Equivalent Shipments | ~$938 | ~$991 | ~+5.7% |
The last row is a reference figure calculated by multiplying each quarter's consolidated revenue by the wafer revenue ratio, then dividing by shipment volume in 8-inch equivalent standard logic wafers. Wafers accounted for 93.9% of revenue in Q1 and 94.6% in Q2. Under this calculation, revenue per wafer rose 5.7%, from approximately $938 to approximately $991.
This does not mean the same product was priced 5.7% higher. It is a blended unit price converting wafers of different diameters, process generations, and product mixes into 8-inch equivalents. SMIC itself has explained that the revenue increase stemmed not only from higher shipment volumes but also from changes in average selling price (ASP) and product mix, with gross margin rising from 20.1% to 25.3%. Against SMIC's 20.0% revenue growth, shipments in 8-inch equivalent standard logic terms grew 14.4%, while the reference blended revenue per wafer also rose 5.7%, from approximately $938 to approximately $991.
These figures of 14.4% and 5.7% are not a strict decomposition of contributions that sum to the 20.0% consolidated revenue growth. The former is growth in equivalent shipment volume, while the latter is growth in a blended unit price with wafer revenue alone as the numerator; non-wafer revenue and compositional differences remain unaccounted for. Even so, it is clear that both volume and price/product mix supported the revenue growth.
Third Place Globally Is Nothing New—Market Share Gaps Vary by Research Firm
According to TrendForce's tally, combined revenue among the top 10 global foundries rose 11.5% quarter-over-quarter to nearly $53.49 billion, setting a new quarterly record. In a separate market share estimate from the same firm, TSMC held approximately $40.2 billion, or 72.5% share; Samsung Foundry held $3.26 billion, or 5.9%; and SMIC held over $3 billion, or 5.4%. UMC followed at 3.9% and GlobalFoundries at 3.2%. Whether the denominator for the top-10 total and the market share figures is identical is not stated in the public announcement, so dividing $40.2 billion by $53.49 billion should not be treated as the basis for the 72.5% figure.
| Research Firm | TSMC | Samsung | SMIC | UMC | GlobalFoundries | Samsung-SMIC Gap |
|---|---|---|---|---|---|---|
| TrendForce | 72.5% | 5.9% | 5.4% | 3.9% | 3.2% | 0.5 pts |
| Counterpoint Research | 73% | 7% | 5% | 4% | 3% | 2 pts |
For the same second quarter of 2026, TrendForce shows Samsung at 5.9% and SMIC at 5.4%, a gap of 0.5 percentage points, while Counterpoint Research, using rounded whole numbers, shows Samsung at 7% and SMIC at 5%. The rankings match, but the distance between Samsung and SMIC differs. Counterpoint Research notes in its historical data that Samsung's figures include manufacturing for its own logic IC needs. TrendForce's public announcement does not specify how Samsung's internal demand was treated in calculating market share. Therefore, the 0.5-point and 2-point gaps should not be averaged as measurement error but read as estimates based on each firm's distinct methodology.
In Counterpoint Research's historical series, SMIC had already ranked third by revenue as far back as at least the third quarter of 2025. This is not the first time SMIC has overtaken GlobalFoundries. Moreover, GlobalFoundries' second-quarter revenue rose 9% quarter-over-quarter to $1.786 billion, with 300mm-equivalent shipments also up 8% to 625,000 wafers—so the ranking shift was not caused by a contraction at GlobalFoundries either. The new development is that, according to TrendForce's estimate, SMIC has narrowed its revenue gap with Samsung to approximately $250 million.
Revenue Convergence and Leading-Edge Process Convergence Must Be Measured Separately
AI demand alone cannot explain SMIC's revenue growth. TrendForce cited front-loaded procurement centered on PCs and laptops, along with increased orders for AI-adjacent ICs and server networking products. Contract demand for NAND and NOR flash amid memory shortages, along with rising prices, also contributed.
According to SMIC's own disclosures, consumer electronics accounted for 44.2% of wafer revenue, followed by smartphones at 16.9%, industrial and automotive at 16.5%, and computers and tablets at 15.6%. By region, China accounted for 90.2% of total revenue. This growth reflects both local sourcing for the Chinese market and the company's ability to capture tight supply conditions across multiple sectors.
On the other hand, SMIC does not disclose revenue by process generation. While 12-inch wafers account for 78.2% of wafer revenue, a 12-inch diameter is not synonymous with leading-edge process technology. The U.S. Department of Commerce added SMIC to the Entity List in 2020, in principle denying export licenses for items specific to manufacturing at 10nm or below. While this is not a complete embargo, the conditions under which SMIC can obtain equipment and technology for leading-edge nodes differ from those of its competitors.
By contrast, TSMC has disclosed that 77% of its second-quarter wafer revenue came from processes at 7nm or below. The breakdown includes 3% at 2nm, 30% at 3nm, 33% at 5nm, and 11% at 7nm. Against TSMC's roughly $40.2 billion in scale and its leading-edge node ratio, SMIC's $3 billion figure lacks a comparable breakdown by node. Convergence in revenue rankings does not indicate that the gap in capability for manufacturing leading-edge AI processors has similarly narrowed.
Samsung, meanwhile, is pursuing a different competitive path. The company does not disclose Foundry's standalone revenue figures, but noted that before accounting for incentive-related provisions, its second-quarter performance improved due to orders for HBM base dies and from U.S. customers. In the second half of 2026, the company plans to ramp up production of second-generation 2nm mobile products and expand sales of 4nm-process LPUs and HBM base dies. Samsung's public materials do not spell out what "LPU" stands for. This difference in disclosure scope should also be kept in mind when comparing TrendForce's estimated $3.26 billion figure for Samsung against SMIC's officially reported revenue.
Next Quarter: Watch Revenue Growth Rate and Gross Margin, Not Just Capacity Utilization
SMIC projects third-quarter revenue growth of 2-4% quarter-over-quarter, with gross margin expected at 26-28%. This represents a significant slowdown from the second quarter's 20% growth. With capacity utilization already at 93.7%, growing revenue while bringing new production capacity online will require SMIC to create shipment headroom while maintaining price levels and product mix.
TrendForce expects that in the third quarter as well, expanded production of flagship smartphones and next-generation AI and high-performance computing infrastructure will drive market revenue growth. However, the same demand will not reach every company in the same form. TSMC will capture orders for leading-edge GPUs and XPUs, Samsung for 2nm processes and HBM base dies, and SMIC for orders centered on Chinese consumer electronics and adjacent ICs.
Whether the gap with Samsung continues to narrow will depend on whether SMIC can sustain revenue growth from its current level above $3 billion, as well as how much Samsung Foundry's own revenue grows. SMIC's projected gross margin of 26-28% is not a measure of the size of the gap itself, but rather an indicator of whether this growth is accompanied by profitability. If revenue by process generation were disclosed, it would become easier to compare the two companies' revenue composition—but that alone would not directly measure the gap in manufacturing capability or technology.