SMIC Co-CEO: AI Demand May Extend Semiconductor Upcycle

The significance here is that a leading Chinese foundry is framing AI as a structural extender of the chip cycle, not just a demand spike — a view that carries weight because SMIC sits close to the localization push Zhao cites. The beneficiaries are domestic supply-chain players tied to that localization trend, while the capacity-expansion caveat matters: growth guided by customer demand, with EBITDA stability and cost control in focus, suggests discipline rather than aggressive buildout. Whether AI demand actually stretches the cycle, and whether localized capacity translates into margin resilience, are the open questions.