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AI Boom Fuels SMIC's Stellar Q2 Earnings
13 Aug
Summary
- Semiconductor Manufacturing International Corp profit more than tripled.
- Company revenue increased by 36%, surpassing forecasts.
- SMIC anticipates continued strong chip demand driven by AI.
Semiconductor Manufacturing International Corp (SMIC), China's leading contract chipmaker, announced on Thursday a remarkable surge in its second-quarter profit, more than tripling compared to the previous year and surpassing analyst estimates. The company's net profit attributable to shareholders reached $479.2 million, nearly doubling the $253.4 million forecast by LSEG analysts.
Revenue for the quarter rose by an impressive 36%, reaching over $3 billion, which also exceeded the $2.8 billion predicted by market analysts. SMIC's filing highlighted that artificial intelligence is expected to sustain robust chip demand into the second half of the year. In response, the company plans to adjust its existing production capacity and expedite the launch of new lines to alleviate industry-wide supply constraints.
