SMIC's Zhao Haijun: Consumer Electronics Memory Supply Expected to Improve in Q3 2026, AI Data Center Shortage to Persist for Several Years

SMIC Co-CEO Zhao Haijun stated during the Q4 2025 earnings call that the supply of memory in the consumer electronics sector is expected to gradually improve in the third quarter of 2026. At that time, consumer-grade memory prices will be nearing their peak, channel inventory will begin to be released, and the consumer electronics and mid-to-low-end mobile phone markets are expected to see a market reversal. However, the shortage of AI data center memory will persist for several years. The bottleneck is mainly in the back-end stages, including HBM manufacturing, packaging, and finished product testing capabilities. Capacity increases require front-end and back-end coordination and have a long cycle. Driven by the AI ​​industry, companies hope to build the infrastructure needed for the next 10 years within 1 to 2 years, and the huge demand is difficult to absorb quickly.