[SMIC Zhao Haijun: AI computing power is in short supply and semiconductor foundry production capacity will be in short supply in 2027] November 13, at SMIC’s 2026 third quarter results meeting held today, SMIC co-CEO Zhao Haijun expressed a positive view on the future development of the semiconductor foundry industry. He believes that the current development of AI is “in the ascendant” and the demand for computing power exceeds supply. The current industry consensus is that 2027 will be a year of very tight production capacity, which is expected to last until the middle to the second half of 2028. After mid-2028, AI-related memory demand may reach a basic balance between supply and demand, and computing power or other supporting chips may still be in short supply. From the perspective of specific wafer revenue, demand for mobile phones and mid- to low-end consumer products has weakened, and may continue to trend downward in the future.