# Zhao Haijun

SMIC Projects Roughly 40,000‑Wafer Monthly Capacity Gain in 2026 but Flags Rising Depreciation

SMIC expects its monthly capacity to rise by about 40,000 12‑inch wafer equivalents by the end of 2026 over last year, but warns that early equipment purchases may not immediately translate into full production. Heavy capital spending will lift depreciation by around 30% year‑on‑year in 2026, squeezing margins unless utilization and cost efficiency improve.