SMIC profit more than triples as AI chip demand fuels China’s semiconductor ambitions

Semiconductor Manufacturing International Corporation, better known as SMIC, just posted quarterly numbers that made analysts look like they brought a calculator to a supercomputer fight. The Chinese chipmaker reported Q2 2026 net profit attributable to shareholders of $479.2 million, more than tripling year-over-year and nearly doubling the $253 to $257 million range that analysts had penciled in. The driving force behind the blowout quarter: relentless demand for AI-related chips. The numbers that matter SMIC’s gross margin came in at 25.3%, handily beating the 21.4% that analysts expected. Looking ahead, SMIC guided for sequential revenue growth of 2% to 4% in Q3 2026. The results were reported on August 13, with shares trading on the Hong Kong Stock Exchange under ticker 0981.HK. SMIC holds the distinction of being China’s flagship foundry. AI demand meets geopolitical reality Washington has spent the last several years tightening export controls designed to limit China’s access to advanced chipmaking technology. Those restrictions have targeted everything from cutting-edge lithography equipment to high-end chip designs, aiming to slow Beijing’s progress in AI and military comp...