Semiconductor Manufacturing International Corp reports a significant second-quarter profit increase driven by rising AI-related chip orders, highlighting a rebound in the Chinese chip sector despite ongoing supply and geopolitical challenges.
Semiconductor Manufacturing International Corp has reported a sharp rise in second-quarter profit, with the mainland China foundry saying artificial intelligence demand is helping to support orders even as the broader chip market remains uneven. Reuters reported that the company’s attributable profit climbed to $479.2 million, well ahead of the $253.4 million average estimate compiled by LSEG, while revenue increased 36% to more than $3 billion.
The figures mark a stronger showing than in earlier periods when SMIC was hit by weaker downstream demand, swollen inventories and the continuing impact of US sanctions. South China Morning Post reported previously that the company’s second-quarter net income and revenue had both fallen year on year, with co-chief executive Zhao Haijun saying demand for electronic products was still below expectations. That earlier backdrop makes the latest rebound more notable, even if the business remains exposed to policy restrictions and cyclical swings in consumer electronics demand.
SMIC said in a filing that AI would keep driving robust chip demand in the second half of the year and that it would adjust existing capacity while speeding up the start-up of new production lines to ease supply bottlenecks across the industry. The company’s comments underline how foundries are trying to balance surging demand for advanced chips with constraints on tooling, maintenance and yield.
The contrast with Taiwan Semiconductor Manufacturing Company is also striking. Tom’s Hardware reported that TSMC posted record quarterly revenue in 2025 on the back of AI and high-performance computing demand, illustrating how the same boom is benefiting the industry’s strongest suppliers while leaving other manufacturers to work through operational and geopolitical pressures.
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