SMIC’s net profit fell 19% from April to June

SMIC, China’s largest semiconductor foundry, recently released its financial report for the period from April to June 2025, showing a 19% year-on-year decrease in net profit to US$132.48 million. While SMIC’s operating revenue increased with rising demand for domestic semiconductors, costs also increased, leading to a profit decline after two quarters.

Revenue from April to June increased 16% to US$2,209.06 million. By region, China accounted for 84% of revenue, up from 80% in the same period last year. The United States accounted for 13%, down from 16% the previous year.

Some analysts believe that due to the Sino-US confrontation, the Chinese government is directing automakers and smartphone manufacturers to prioritize domestic semiconductors, leading to an increase in orders for SMIC.

SMIC’s co-CEO, Zhao Haijun, stated at an earnings conference on August 8 that orders for automotive and industrial semiconductors are increasing. The growing market share of Chinese clients, such as automakers, is driving this growth.

Automotive semiconductors require a longer time for product verification, resulting in slower upgrades compared to other sectors. However, SMIC is striving to achieve its goal of increasing its market share within the industry.

The equipment utilization rate from April to June was 93%, an improvement from 85% in the same period last year.