On November 25, some investors asked SMIC on the platform of “Shanghai Stock Exchange e interactive”: it is reported that there is a strong demand for 8-inch wafer foundry capacity, and a number of wafer foundry factories will adjust and increase the prices in the fourth quarter and the first quarter of next year. Does your company have such a plan? In response to the question, SMIC said today (November 26): orders from existing customers will be made according to the signed contracts, while prices for new customers and new projects will be determined by both parties through negotiation. SMIC will also improve the average wafer price by optimizing its product mix. < p > < p > half a month ago (November 11), SMIC disclosed its third quarterly report that its revenue exceeded $1 billion for the first time, reaching a new high for three consecutive quarters. The demand for mature application platforms was strong, the capacity utilization rate was close to full load, and the related revenue from chips such as power management increased significantly. < / P > < p > since the second half of the year, the global 8-inch wafer foundry capacity has been in continuous shortage. On the one hand, the total capacity has stagnated due to few new investment in the 8-inch wafer factory for many years; on the other hand, home office and online education have led to a surge in demand for intelligent terminals, putting the chip capacity under pressure. In September, the U.S. government further strengthened its international export control on SMIC, which had a certain impact on the expansion of its 8 inch / 12 inch mature process and advanced process, and also put further pressure on the already tight global wafer foundry capacity. < / P > < p > after it was confirmed that the US strengthened export control, SMIC’s share price once fell, and investors kept asking about the progress of communication between the company and the US Department of Commerce in “Shanghai Stock Exchange E-interaction”, including whether the follow-up procurement can be continued and the follow-up negotiation plan of SMIC. < p > < p > SMIC said in its reply today that it has always adhered to the compliance operation and abided by the relevant laws and regulations of the place where it operates. At present, the company is in normal operation and has actively communicated with relevant US government departments, but the details are not convenient to disclose. < / P > < p > “at present, there is no obvious phenomenon of customer order transfer. The company maintains a partner mode of active communication and close cooperation with customers to meet their needs as much as possible.” In reply to the question, SMIC also indirectly responded to the rumor that “Qualcomm turns to TSMC”. < / P > < p > Taiwan media previously reported that Qualcomm had planned to transfer the power management chips of 5g mobile phones to other manufacturers, but due to the global capacity shortage, the company also failed to find an “alternative capacity” for SMIC to increase its price. < p > < p > on July 31, this year, SMIC and the Management Committee of Beijing Development Zone signed the cooperation framework agreement. The two sides will establish a joint venture to engage in development and operation, focusing on the production of 28nm and above integrated circuit projects. The first phase plans to achieve a monthly production capacity of about 100000 pieces of 12 inch wafers. China’s

do or think the same without prior consulation2, the media has released news that the TSMC and Samsung electric power company are targeting the huge domestic demand market in mainland China, and are ready to expand the 28nm in the mainland to increase their share. According to the Securities Research Report, with the continuous promotion of 5g, the demand for advanced process chips in the electronic industry is surging. With the advantages of huge market demand, rich demographic dividend, stable economic growth and favorable policy environment, China’s IC industry will achieve rapid development.

“at present, there is still a supply and demand mismatch in the integrated circuit market in Chinese mainland, which provides a broad market prospect for SMIC and other wafer foundries.” According to the report. Chinese version of K-car: reading a10e design drawing exposure