SMIC, the largest domestic wafer foundry, released its Q2 financial report on August 7, with revenue of 2.209 billion US dollars (IT Home Note: the current exchange rate is about 15.878 billion yuan) up 16.2% year-on-year. SMIC's capacity utilization rate in the quarter also attracted attention. The Q2 capacity utilization rate was 92.5%, an increase of 2.9 percentage points month-on-month (Q1 was 89.6%). In contrast, Huahong International, the second largest domestic wafer foundry, achieved 108% capacity utilization in Q2. This phenomenon has attracted the attention of analysts, SMIC co-CEO Zhao Haijun also responded to the problem in the earnings conference, and stressed that SMIC's capacity utilization rate will never exceed 95%.

Zhao Haijun said that SMIC's current capacity utilization rate is only 92-93%, one reason is that the company has to take out a considerable part of it to do research and development, followed by SMIC's financial rules are not the same, as long as the equipment comes in, it has the ability to count in the capacity, even if many products have not been done on this equipment, SMIC is also placed in the denominator, which also drags down SMIC's utilization rate.