SMIC

SMIC’s Q2 revenue reached $2.209 billion, a 16.2% YoY increase despite a slight QoQ dip. Net profit fell 19% YoY to $132.5 million, but capacity utilization rose to 92.5%. The average selling price (ASP) increase was attributed to high capacity utilization, not proactive price hikes. SMIC maintains a consistent stance against initiating price wars and will consider following competitors’ price increases if they occur. SMIC’s ASP remains significantly lower than TSMC’s due to its focus on less advanced nodes.

Leading Chinese foundries SMIC and Hua Hong Semiconductor reported strong Q2 earnings with double-digit revenue growth. SMIC’s revenue reached $2.209 billion, a 16.2% YoY increase, with a capacity utilization rate of 92.5%. Hua Hong’s revenue was $5.661 billion, up 18.3% YoY, achieving a 108.3% capacity utilization rate. Both companies project continued revenue growth for Q3. No price increases were noted by SMIC in Q2, attributing higher ASP to near full capacity operation.