SMIC, a major chipmaker, is considering reporting revenue from AI-related peripheral chips as a separate line item starting possibly in the third quarter of 2026.
The move reflects strong demand for AI chips outpacing SMIC's current reporting categories.
What happened
SMIC is considering breaking out revenue from AI-related peripheral chips as a standalone line item in its financial disclosures, possibly starting in the third quarter of 2026, according to executives.
Why it matters
The move signals that AI chip demand has grown large enough to warrant its own reporting category rather than being lumped into SMIC's existing product segments. This reflects the scale of the AI chip market and SMIC's growing role serving it.
What to watch
The exact timing and structure of how SMIC will separate and disclose this revenue—expected possibly from Q3 2026 onward—will clarify the size and trajectory of its AI peripheral chip business.
Semiconductor Manufacturing International Corporation (SMIC), one of the world's leading chipmakers, is preparing to give AI chips their own reporting line in its financial statements. Executives disclosed that the company is considering breaking out revenue from AI-related peripheral chips—support chips that work alongside main AI processors—as a distinct revenue category, with the change potentially taking effect in the third quarter of 2026 or later. The decision stems from the reality that demand for these AI peripheral chips has grown so rapidly that they no longer fit neatly into SMIC's existing product reporting segments. By creating a dedicated revenue line, SMIC will provide clearer visibility into how large its AI-focused business has become, helping investors and analysts understand the company's exposure to the booming AI infrastructure market.
SMIC's plan to separately report AI chip revenue reflects the maturation and scale of the AI semiconductor market. As demand for chips supporting AI systems—beyond just the main processors—has grown, traditional reporting segments no longer adequately capture this business stream. By creating a standalone line item, SMIC is signaling to investors and the market that this segment is now material enough to track independently. This move also positions SMIC to demonstrate its exposure to the high-growth AI infrastructure market at a time when investors are closely watching chipmakers' AI revenue contributions.
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