AI demand drives triple-digit quarterly profit growth for Chinese foundries SMIC, Hua Hong
AI Summary
China's leading chipmakers SMIC and Hua Hong Grace Semiconductor experienced triple-digit profit growth in Q2 driven by increased demand for AI chips amid easing U.S. export restrictions.
China’s top two contract chipmakers, Semiconductor Manufacturing International Corporation (SMIC) and Hua Hong Grace Semiconductor, saw their profits surge by triple digits in the second quarter, amid a spike in demand for domestic artificial intelligence chips free of US export controls. Net profits for SMIC and Hua Hong jumped 261.7 per cent and 385.9 per cent year on year to US$479.2 million and US$38.6 million, respectively, in the June quarter. SMIC, the country’s largest foundry, said...