China: Chipmaker SMIC breaks the three billion dollar sales mark
Despite US sanctions, the contract manufacturer continues to grow. The AI boom in China is driving demand in the country. But government subsidies of billions are also driving dynamics.
Shanghai's Semiconductor Manufacturing International Corporation (SMIC) achieved a historic milestone in the second quarter of 2026, reporting revenue surpassing three billion US dollars for the first time. The company's earnings rose to 3.01 billion dollars, marking a 20% increase from the first quarter and a 36% boost from the same period last year.
SMIC also reported improved profitability, with the gross margin rising from 20.1 to 25.3 percent, a 5.2 percentage point gain. The management attributed these positive results to the direct and spillover effects of the artificial intelligence (AI) boom, which has created a high demand for semiconductors. The Chinese government is actively promoting high-tech industries, particularly in electric drives, robotics, and AI, with plans to continue or even deepen this trend over the next five years according to the Five-Year Plan for 2026-2030.
However, SMIC did not disclose the breakdown of how much of the revenue came from AI-specific chips.
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