Semiconductor Manufacturing International Corp reports a threefold increase in quarterly profits, highlighting the accelerating impact of artificial intelligence demand on China’s chip manufacturing sector amidst continued industry expansion.
Semiconductor Manufacturing International Corp has reported a sharp jump in quarterly earnings as demand tied to artificial intelligence continues to reshape China’s chip industry. The country’s largest contract chipmaker said net profit rose more than threefold to $479.2 million in the second quarter, while revenue climbed 36% to more than $3 billion, according to Investing.com.
The performance underlines how AI-related orders are helping offset weakness in parts of the broader semiconductor market. SMIC said it plans to reconfigure existing production lines and bring new capacity onstream more quickly as supply remains tight across the industry. It also said it expects AI chip demand to stay strong in the second half of the year.
The latest figures follow a volatile period for the company, which has been spending heavily to expand its manufacturing base. Caixin Global reported that in the fourth quarter of 2025, SMIC’s revenue rose 12.8% to $2.49 billion, but profit fell 24.9% to $203 million because of expansion costs. The company has said it expects capital spending of about $8.1 billion in 2026, reflecting its push to enlarge output in response to stronger demand.
There are also signs that growth is not evenly distributed across product categories. South China Morning Post reported that SMIC expects flat revenue in the first quarter of 2026, as weaker low-end orders offset gains from AI chips. At the same time, the paper said the company’s 2025 revenue rose 16.2% to $9.3 billion and net profit jumped 39% to $685.1 million, helped by higher wafer shipments and better factory utilisation. Forbes added that SMIC has benefited from a wider shift in demand towards 8-inch wafers, with its three 8-inch fabs operating at a 96% utilisation rate in the fourth quarter of 2025. The company also raised prices on some production lines by about 10% late last year, while EdgeN reported that SMIC has lifted its 2026 outlook on stronger orders for power management chips used in AI servers.
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