AI Demand Drives Triple Digit Profit Growth for SMIC and Hua Hong
2 sources across 2 countries · Hong Kong · United Kingdom
Who reported this
- South China Morning Post
- Reuters
What the colours mean
- Left
- Centre-left
- Centre
- Centre-right
- Right
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Chinese chip foundries SMIC and Hua Hong reported triple digit profit growth in the June quarter driven by demand for AI chips. SMIC saw its profit more than triple, while net profits for SMIC and Hua Hong rose 261.7 percent and 385.9 percent year on year to 479.2 million US dollars and 38.6 million US dollars, respectively. Revenue for Hua Hong reached a record 717.5 million US dollars, which was a 26.8 percent increase from the previous year and exceeded the consensus estimate of 702.7 million US dollars.
SMIC stated in a filing to the Hong Kong stock exchange that industrial momentum from AI will persist into the second half of the year. The company noted it would accelerate new capacity and flexibly allocate existing capacity to address supply constraints. The results indicate that local foundries are operating plants at full capacity to meet domestic needs as startups and tech giants seek computing power for AI applications and large model training.
How each side framed it
- Centre
- The center lean outlet focused specifically on the profit surge of SMIC linked to AI demand.
- Centre-right
- The center-right lean outlet framed the growth as a result of local foundries aggressively meeting domestic needs.
Sources
100% of the statements in this article were traced back to the source articles listed above.