Two major updates from China's semiconductor industry:

• SMIC: 2026 revenue is projected to surpass $12B (+30% YoY), driven by 12-inch wafers (79% of wafer revenue) and domestic demand (90.8% of total sales). Co-CEO Zhao Haijun expects AI foundry shortages to last through mid-2028.
• Hygon: CEO Sha Chaoqun told global investors in Shanghai that AI compute has shifted from single-chip specs to "system-level competition." Because lithography limits how powerful a single chip can get, Hygon is pairing its x86 CPUs (with next-gen models entering mass production in 2027) and DCU accelerators together at the server-rack level to boost overall performance.