China's largest contract chipmaker, SMIC, has raised prices for its most sought-after manufacturing capacity amid growing demand from the artificial intelligence (AI) industry. Higher prices for silicon wafer processing will take effect in the third quarter.
In the second quarter, SMIC's revenue exceeded $3 billion for the first time, while profit attributable to shareholders tripled to $479.2 million. The company shipped 2.9 million wafers, up 14% from the previous quarter. The average wafer price increased by 5.7%.
Monthly production capacity reached 1.1 million wafers, with utilization at 93.7%. In the second quarter, SMIC also added 8,000 wafers of monthly capacity in the 12-inch format.
About 90% of revenue came from China. The company expects revenue growth of 2% to 4% in the third quarter.