AI boom drives mature-node chip orders to Chinese foundries, SMIC benefits
A capacity crunch in mature-node semiconductors, caused by global foundries pivoting to high-margin AI chips, is driving orders to Chinese manufacturers. Zhao, head of SMIC, noted that consumer electronics and IoT clients are seeking capacity in mainland China, reinforced by EV demand, robotics, supply-chain localization, and stockpiling. TrendForce data shows average utilization for 8-inch wafers at top foundries is expected to hit nearly 90% in 2026, up from 80% in 2025, driven by PMICs for AI servers. TSMC plans to reduce some 12-inch mature-node capacity, pushing overflow to Chinese and second-tier foundries. SMIC's wafer utilization rose to 93.1% in Q1 2025 from 89.6% a year earlier, with China revenue reaching nearly 89% of total.
Key facts
- Global AI boom causes shortage in mature-node semiconductors as foundries shift to high-margin AI chips.
- SMIC head Zhao says consumer electronics and IoT customers are seeking capacity in mainland China.
- TrendForce predicts 8-inch wafer utilization at top 10 foundries to hit nearly 90% in 2026.
- PMICs for AI servers drive the rebound in mature-node demand.
- TSMC plans to reduce some 12-inch mature-node capacity.
- Chinese and second-tier foundries absorb overflow from TSMC.
- SMIC's wafer utilization rose to 93.1% in Q1 2025 from 89.6% a year earlier.
- SMIC's China revenue climbed to nearly 89% of total.
Entities
Institutions
- SMIC
- Taiwan Semiconductor Manufacturing Company (TSMC)
- TrendForce
Locations
- China
- mainland China
- Taiwan