Overview

• SMIC reported second-quarter revenue of $2.2 billion, up 16.2% year-on-year, while net profit fell 19.5% to $132.5 million, missing analysts’ estimates.
• Co-CEO Zhao Haijun said the proposed 100% tariff on chip imports has not caused the feared “hard landing” thanks to measures taken after April’s tariff hikes.
• Robust domestic orders have driven utilization above 90% and will keep SMIC’s production capacity tight until at least October.
• The company has not sought customer input on the new U.S. levy and expects its impact to shrink as clients tap inventory buffers and alternate suppliers.
• China accounted for 84% of SMIC’s Q2 revenue while the U.S. made up 12.9%, underscoring limited exposure under ongoing export restrictions.