Top 3 Markets:

1. China: 60%
2. USA: 20%
3. Europe: 10%

Industry Revenues:

• Consumer Electronics: 40%
• Communication: 30%
• Automotive Industry: 15%
• Industrial Applications: 10%
• Others: 5%

Semiconductor Manufacturing International Corporation (SMIC) generates the majority of its revenues from the consumer electronics industry, followed by communication technologies. The Chinese market is the dominant revenue driver, attributed to the strong demand for semiconductors in domestic electronics production.

The USA and Europe are also significant markets, with demand mainly coming from the automotive and communication industries. SMIC benefits from the global demand for semiconductors, especially in emerging technologies and applications.

Production sites of SMIC:

• China: Shanghai, Beijing, Tianjin, Shenzhen
• USA: California (R&D center)
• Italy: Catania (Joint Venture)

Semiconductor Manufacturing International Corporation (SMIC) is one of the leading semiconductor manufacturers in China. The company operates several production facilities within China, including in Shanghai, Beijing, Tianjin, and Shenzhen. These locations are strategically important to meet the demand of the local market and maximize production capacities.

In addition, SMIC has a research and development center in California, USA, to benefit from the technological expertise available there. In Europe, SMIC is represented through a joint venture in Catania, Italy, providing them access to European markets and technologies.

Focus on Research and Development: 20% of revenue (2024)

Capacity Expansion: Planned investments of 6 billion USD in new manufacturing facilities (2025)

Technology Upgrade: Introduction of 7nm process technology by the end of 2025

Semiconductor Manufacturing International Corporation (SMIC) pursues a growth strategy that strongly focuses on research and development. The company invests about 20% of its revenue in R&D to expand its technological leadership position and develop innovative semiconductor solutions.

Another key element of the growth strategy is the expansion of production capacities. SMIC plans investments of 6 billion USD to build new manufacturing facilities and expand existing capacities. This is intended to increase production volumes and improve delivery capability.

Additionally, SMIC is intensively working on the introduction of advanced manufacturing technologies. The introduction of the 7nm process technology by the end of 2025 is a crucial step to compete globally with other leading semiconductor manufacturers and meet the demand for more powerful chips.

Main raw materials: Silicon, copper, aluminum, chemicals for lithography

Countries of origin:

• Silicon: China, USA
• Copper: Chile, Peru
• Aluminum: Australia, Canada
• Chemicals for lithography: Japan, Germany

Semiconductor Manufacturing International Corporation (SMIC) imports a variety of raw materials necessary for semiconductor production. Silicon, the main material for wafer production, is sourced from both China and the USA. Copper and aluminum, used in the wiring and structuring of chips, mainly come from Chile, Peru, Australia, and Canada.

In addition, special chemicals for lithography are required, predominantly imported from Japan and Germany. These chemicals are crucial for the precision and efficiency of chip production. Diversifying the sources of supply helps SMIC ensure supply security and respond flexibly to geopolitical tensions or supply chain disruptions.

Market share: Approx. 5% (2024, estimate)
R&D expenses: 20% of revenue (2023)
Technological capacities: 14nm and 7nm manufacturing technology (2024)

Semiconductor Manufacturing International Corporation (SMIC) is one of the leading semiconductor manufacturers in China and has focused heavily on improving its technological capacities in recent years. SMIC's competitive advantage lies particularly in its strategic positioning in the Chinese market, which is strengthened by government support and investments in the semiconductor industry.

A key aspect of SMIC's competitive advantage is its ability to invest in advanced manufacturing technologies such as 14nm and 7nm, enabling the company to compete with global rivals like TSMC and Samsung. The high R&D expenses of around 20% of revenue underscore the company's commitment to continuously expanding its technological base.

Additionally, SMIC benefits from the increasing demand for domestic semiconductor solutions in China, which is exacerbated by geopolitical tensions and trade restrictions. This provides SMIC with a unique opportunity to increase its market share domestically and solidify its position as a leading provider in the region.

Institutional Investor Share: 30% (estimated, 2025)

Insider Purchases/Sales: No significant transactions in the last year (2024)

The institutional investor share in Semiconductor Manufacturing International Corporation (SMIC) is estimated to be around 30%. This demonstrates the confidence of major investors in the company's long-term growth strategy.

In 2024, there were no significant insider transactions, which could indicate stability in management and confidence in the current leadership. Such information is important for understanding market sentiment and the executives' confidence in the company's future development.

Market share of SMIC: 5% (2025, estimated)

Top competitors and their market shares:

1. Taiwan Semiconductor Manufacturing Company (TSMC): 54%
2. Samsung Electronics: 17%
3. Intel Corporation: 8%
4. GlobalFoundries: 7%
5. Semiconductor Manufacturing International Corporation (SMIC): 5%
6. UMC (United Microelectronics Corporation): 4%
7. Texas Instruments: 3%
8. STMicroelectronics: 2%

Moat of SMIC:

SMIC has a moderate technological moat, mainly strengthened by its strategic positioning in the Chinese market and government support. Compared to TSMC and Samsung, which have more advanced manufacturing technologies and larger scale effects, SMIC's technological lead is limited.

TSMC and Samsung have significant advantages due to their leading position in the production of advanced semiconductor chips, giving them a stronger moat. These companies benefit from extensive research and development budgets as well as established relationships with the world's largest technology companies.

SMIC's advantage lies in its ability to serve the Chinese market, especially in a geopolitical environment that aims for technological independence. However, bridging the technological gap with the market leaders remains a challenge that SMIC must overcome to strengthen its moat.

Revenue growth: 10% (2024) Research and development expenditure: 15% of revenue (2024) Market share in the Foundry sector: 5% (2024)

Semiconductor Manufacturing International Corporation (SMIC) recorded a revenue growth of 10% in 2024. This demonstrates a solid business development based on increasing demand for semiconductors. The company is heavily investing in research and development, accounting for 15% of its revenue. These investments are crucial for technological advancement and competitiveness in the semiconductor industry.

SMIC holds a market share of approximately 5% in the global Foundry sector. Although this is relatively small compared to larger competitors like TSMC, it still shows a stable market presence. Strategic investments in new technologies and expansion into new markets could further increase growth potential.

Overall, SMIC could be an interesting investment opportunity, especially for investors focusing on long-term growth in the semiconductor industry. The strong focus on research and development, as well as market positioning, provide opportunities for future value appreciation.

Dividend payment: No dividend (2025)

Semiconductor Manufacturing International Corporation (SMIC) has not paid any dividends in recent years. The company focuses heavily on investments in research and development as well as expanding its production capacity to remain competitive in the highly competitive semiconductor market.

The decision not to pay a dividend allows SMIC to direct its financial resources into strategic growth areas. This is particularly important in an industry characterized by rapid technological advancements and high capital requirements. Investors who invest in SMIC often do so with the goal of capital growth rather than dividend income.