China’s top two contract chipmakers, Semiconductor Manufacturing International Corporation (SMIC) and Hua Hong Grace Semiconductor, saw their profits surge by triple digits in the second quarter, amid a spike in demand for domestic Artificial Intelligence chips free of US export controls.Net profits for SMIC and Hua Hong jumped 261.7 per cent and 385.9 per cent year on year to US$479.2 million and US$38.6 million, respectively, in the June quarter.SMIC, the country’s largest foundry, said Thursday that revenue for the three months ending June increased 36 per cent year on year to US$3 billion, in line with the consensus estimate of US$2.9 billion compiled by Bloomberg.
SRCSouth China Morning Post
LANGEN
LEANCenter-Right
WORDS105
ENT7
THU · 2026-08-13 · 11:00 GMTBRIEF NSR-2026-0813-101906
NSR-2026-0813-101906News Report·EN·Technology
AI demand drives triple-digit profit growth for Chinese chip foundries SMIC, Hua Hong
China's leading contract chipmakers, SMIC and Hua Hong, experienced significant profit growth in the second quarter. SMIC's net profit increased by 261.7% year-on-year to $479.2 million, while Hua Hong's net profit rose by 385.9% to $38.6 million.
Ann CaoSouth China Morning PostFiled 2026-08-13 · 11:00 GMTLean · Center-RightRead · 1 min
South China Morning PostFIG 01
Reading time
1min
Word count
105words
Sources cited
1cited
Entities identified
7entities
Quality score
100%
§ 01
Briefing Summary
AI-generatedNEWSAR · AI
China's leading contract chipmakers, SMIC and Hua Hong, experienced significant profit growth in the second quarter. SMIC's net profit increased by 261.7% year-on-year to $479.2 million, while Hua Hong's net profit rose by 385.9% to $38.6 million. This surge in profits is attributed to increased demand for domestic artificial intelligence chips that are not subject to US export controls. SMIC, the largest foundry in China, reported a 36% year-on-year increase in revenue for the June quarter, reaching $3 billion.
Confidence 0.85Sources 1Claims 5Entities 7
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Article analysis
Model · rule-basedFraming
Technology
Economic Impact
Tone
Measured
AI-assessed
CalmNeutralAlarmist
Factuality
0.90 / 1.00
Factual
LowHigh
Sources cited
1
Limited
FewMany
§ 03
Key claims
5 extracted01
SMIC's Q2 revenue was in line with the consensus estimate of US$2.9 billion.
statisticSMIC, Bloomberg
Confidence
1.00
02
SMIC's revenue increased 36% year-on-year to US$3 billion in Q2.
statisticSMIC
Confidence
1.00
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Hua Hong's net profit increased 385.9% year-on-year to US$38.6 million in Q2.
statisticHua Hong
Confidence
1.00
04
SMIC's net profit increased 261.7% year-on-year to US$479.2 million in Q2.
statisticSMIC
Confidence
1.00
05
SMIC and Hua Hong saw profits surge by triple digits in Q2 due to AI chip demand.
statisticSMIC, Hua Hong
Confidence
1.00
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Full report
1 min read · 105 words§ 05
Entities
7 identifiedKey playerOppositionContextPositiveNeutralNegative
Organizations4
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Keywords & salience
9 termschip foundries
1.00
ai demand
1.00
smic
0.90
hua hong
0.90
profit growth
0.80
artificial intelligence chips
0.70
us export controls
0.60
semiconductor manufacturing
0.50
contract chipmakers
0.40
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