SMIC Q1 2026: Revenue $2.51B, AI Orders Drive Q2 Guidance +14–16% QoQ as Smartphone Share Hits Multi-Year Low

SMIC reported Q1 2026 financial results on May 15 with revenue of $2.51 billion and net profit of $197.4 million — the latter missing the $223.6 million analyst consensus, according to TrendForce. However, the headline number masks a significant structural shift: SMIC's Q2 2026 guidance of $2.86–2.91 billion (+14–16% QoQ) reflects accelerating AI-related chip demand. Smartphone-related revenue as a share of SMIC's total mix hit its lowest level since 2021, with AI and industrial chip orders absorbing an increasing proportion of wafer output. This mirrors the strategic pivot that SMIC founder Richard Chang had articulated publicly (May 11, 2026): that China should dominate the mature-node segment (below 28nm for most industrial and automotive applications) rather than fight the EUV lithography battle. SMIC's shift is also visible in its customer mix — AI-accelerated edge devices, IoT modules, and automotive electronics are displacing consumer smartphone SoCs as the primary demand drivers. SMIC is targeting approximately 50,000 wafers per month at its 7nm-equivalent process node by June 2026. SCMP reported that both SMIC and Hua Hong are guiding Q2 growth led by AI demand — with the two foundries now effectively specializing: SMIC on advanced mobile and AI inference nodes, Hua Hong on specialty analog, power management, and automotive. The earnings trajectory positions SMIC for a potential annual revenue of $10B+ in 2026, exceeding its 2025 record of $9.33B.