SMIC Profit More Than Triples as China’s AI Chip Demand Drives Semiconductor Capacity Expansion
SMIC reported second-quarter profit of $479.2 million as AI-related semiconductor demand helped drive stronger foundry utilization and capacity expansion.
Why it matters: SMIC’s earnings and capacity plans show AI demand becoming materially important inside China’s domestic semiconductor supply chain.
Semiconductor Manufacturing International Corp., China’s largest contract chipmaker, reported sharply higher quarterly profit as artificial-intelligence-related semiconductor demand continued to strengthen. Reuters reports second-quarter profit attributable to shareholders reached $479.2 million, more than triple the year-earlier level, while revenue rose strongly. SMIC expects AI-related demand to remain an important driver through the second half and plans to optimize existing capacity while accelerating new production lines. The results matter beyond SMIC itself: China is investing heavily in domestic processors, foundry capacity and AI infrastructure as technology companies seek more local supply. Stronger demand at SMIC therefore provides another indicator of how fast China’s AI hardware ecosystem is scaling.