SMIC Raises Wafer Prices as AI Demand Boosts Revenue

Semiconductor Manufacturing International Corp increased prices for its most sought-after production capacity following strong demand for AI-related chips. Co-CEO Zhao Haijun announced that the company raised prices after first-quarter negotiations and will implement further increases for wafers processed in the third quarter to align with industry-leading standards.

The company reported second-quarter revenue exceeding $3 billion for the first time, with profit attributable to shareholders tripling to $479.2 million, surpassing analyst estimates. This growth was driven by a 14% quarterly increase in wafer shipments, primarily from China-based customers seeking chips other than CPUs and GPUs. Production utilization reached 93.7% during the second quarter.

To address global supply constraints, the company plans to adjust existing capacity and accelerate the ramp-up of new production lines. Chief Financial Officer Wu Junfeng attributed the jump in net profit to a one-time gain from a subsidiary.