Reuters reported on November 13 that Zhao Haijun, co-CEO of SMIC, China’s largest semiconductor foundry, said the artificial intelligence industry remains in its early stages, with robust demand continuing and customers requiring computing power still facing supply shortages.
Zhao stated that supply constraints in semiconductors related to AI will persist through 2027, driven by demand from data centers and private cloud infrastructure. He projected that memory supply and demand may achieve near balance by late 2028, but shortages in computing power or supporting chips could continue at that time.
He also noted that equipment delivery timelines have lengthened, with some orders taking over 24 months to fulfill, which will impact the company’s capital expenditure this year. Depreciation expenses are expected to rise by approximately 30% year-on-year in 2026.
Original: toutiao.com/article/1881720471704576/
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