SMIC posts record $3B quarter and hikes wafer prices — US sanctions hand Chinese foundry a captive AI market
SMIC posted its first $3 billion quarter earlier this month, with revenue up 36.1% year on year, net profit nearly tripling to $479.2 million.
SMIC, the leading Chinese semiconductor foundry, reported a record $3 billion quarterly revenue, marking a 36.1% increase year-on-year and net profit nearly tripling to $479.2 million. This success can be attributed to the U.S. export controls, which have cut off Chinese AI data center demand from leading competitors TSMC and Samsung.
SMIC, CEO Zhao Haijun stated that the foundry will increase wafer prices in the third quarter, following price negotiations concluded in the first quarter. The company's utilization reached 93.7%, but it cannot fully meet the demand due to customers' expectations for fairer pricing.
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