SMIC co-CEO sees 2026 revenue topping $12 billion as AI demand stretches chip upcycle

In today's China economy news, the results and full-year forward view support the argument that AI demand is spilling over from leading-edge chips into mature-node foundries, according to investingLive. That is constructive for China's chip supply chain, and it may help unchanged sentiment toward SMIC's Hong Kong shares following a steep sell-off.

Key points

• SMIC co-chief executive Zhao Haijun noted the business anticipates full-year revenue to top $12 billion.
• Revenue climbed 34% from a year earlier to around $3.19 billion, after topping $3 billion for the first time in the second quarter.
• The business's Hong Kong shares dropped 32% in the third quarter and have lost about another 20% this quarter.
• TrendForce data show SMIC's global foundry market share moved higher to 5.4% in the second quarter.
• The warning about equipment delivery times points to solid demand for tools.

China economy: the details

The warning about equipment delivery times points to solid demand for tools, a positive read-through for chip equipment makers that fits Applied Materials' upbeat prospects this week. So will continued questions over how swiftly AI spending pays off, which could cap any rebound across Asian chip shares. His warning that equipment shortages could disrupt spending reveals how tight the supply chain has become.

SMIC co-chief executive Zhao Haijun noted the business anticipates full-year revenue to top $12 billion, up almost 30% from last year. Revenue climbed 34% from a year earlier to around $3.19 billion, after topping $3 billion for the first time in the second quarter.

TrendForce data show SMIC's global foundry market share moved higher to 5.4% in the second quarter, closing in on Samsung's 5.9%, though both stay far behind TSMC. The business's Hong Kong shares dropped 32% in the third quarter and have lost about another 20% this quarter, as market participants question how rapidly heavy AI spending will pay off.

Why traders are watching China economy

China is the world's largest commodity importer, so its growth outlook and policy decisions affect metals, oil and the currencies of trading partners such as Australia and New Zealand.

Stimulus measures or weak data from China can quickly shift sentiment in Asian markets, industrial commodities and the Australian dollar.

Market reaction and data

On the currency side, the latest ECB daily reference rates (2026-11-12) show EUR/USD 1.1081, GBP/USD 1.3256, AUD/USD 0.6821, NZD/USD 0.5556, USD/JPY 159.7, USD/CHF 0.8331, USD/CAD 1.4249, USD/CNY 6.6683. These are reference fixes, not live quotes.

What to watch next for China economy

Watch for Chinese activity data, policy support announcements from Beijing and moves in the yuan and commodity-linked currencies.

Key scheduled releases on the economic calendar:

• USD Core PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.3%, previous 0.7%
• USD PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.4%, previous 1.3%

Follow every update in our Top 10 Forex News Today, read Fed’s Williams notes inflation stubbornly high and Fed still has work to do on policy or see all of today's top market news.

FAQ

What is the latest China economy news?

The results and full-year forward view support the argument that AI demand is spilling over from leading-edge chips into mature-node foundries.

Why does China matter for forex traders?

China's demand for raw materials and its trade links make its economy a key driver for commodity currencies like the Australian and New Zealand dollars.

Where does this information come from?

This report is based on coverage from investingLive, checked against market data where available. It is a summary for information only and not investment advice.