Key facts
- SMIC's second-quarter profit more than tripled year-on-year to $479.2 million.
- Profit attributable to shareholders nearly doubled the average analyst estimate.
- Revenue rose 36% to over $3 billion, exceeding analyst forecasts.
- SMIC anticipates continued robust chip demand in the second half of the year due to AI.
- The company will adjust existing capacity and accelerate new production lines.
China's largest contract chipmaker, Semiconductor Manufacturing International Corp (SMIC), reported a significant increase in its second-quarter profit, which more than tripled compared to the same period last year, surpassing analyst expectations. Profit attributable to shareholders reached $479.2 million, nearly double the average analyst estimate of $253.4 million compiled by LSEG. Revenue also saw a substantial rise, increasing by 36% to over $3 billion, exceeding the $2.8 billion forecast by analysts. SMIC indicated that demand for AI-related chips remained robust and is expected to continue driving strong chip demand in the second half of the year. To address industry-wide supply constraints, the company plans to adjust its existing capacity and accelerate the ramp-up of new production lines.