The analyst rating for SMIC (00981.HK) is maintained at "Buy" by DBS Group Research due to the company's strong position as China's leading 7nm-class wafer foundry, extensive 12-inch footprint, and advanced local logic process capabilities. The report highlights that SMIC is expected to benefit from the supply chain's shift towards local design and domestic manufacturing. However, the target price was cut from $88.8 to $87.4, and earnings forecasts for 2026 and 2027 were lowered by 10% and 12%, respectively, to account for short-term pressure on profit margins.
