SMIC saw its capital expenditure for 2023 increased by 18% to US$7.47 billion from a year ago. However, the company expects its capital expenditure to remain flat in 2024, while revenue for 2024 is expected to grow by a single-digit percentage over 2023. Zhao Haijun, co-CEO of SMIC, said at the earnings call that after two years of chip shortage and overheated demands, the semiconductor industry encountered deep corrections, and a macroeconomic downturn and intensified geopolitical tensions persist till now. Zhao said in the third quarter of 2023, the mobile industry experienced upgrades, bringing rush orders and signs of recovery. However, he said the industry has not seen a full recovery, and the company is still closely watching to see whether the rush orders can be sustained. A recent report from the Financial Times said that SMIC established a new wafer fab, aiming to achieve mass production of 5nm chips, which will power Huawei's next-generation high-end smartphone.