AI Demand Sparks Surge in SMIC’s Semiconductor Production

Semiconductor Manufacturing International Corp (SMIC) experienced a significant upsurge in production due to escalating AI demand. The company raised wafer prices while reporting $3 billion in revenue for Q2 2023. Profit tripled to $479.2 million as AI leads to global semiconductor supply chain constraints.

Semiconductor Manufacturing International Corp (SMIC), China's leading foundry, announced continued strong demand driven by artificial intelligence developments, impacting production orders. In response, SMIC increased prices for its in-demand wafer capacity.

Co-CEO Zhao Haijun revealed during an earnings call that SMIC raised prices after Q1 customer negotiations, and would further charge for Q3 processed wafers. Despite reaching top-tier industry standards, a disparity exists between leading wafer prices and SMIC’s rates, compelling pricing discussions with customers.

SMIC, China's sole foundry capable of mass-producing logic chips like CPUs and GPUs via 7-nanometre processes, surpassed $3 billion in Q2 revenue due to thriving AI demand. With shareholder profit tripled to $479.2 million, results exceeded LSEG compiled analyst predictions, showing a 14% increase in 8-inch-equivalent wafer shipments.