SMIC's Q2 total revenue reached $2.209 billion (-1.7% QoQ), with wafer sales rising 4.3% QoQ to 2.39 million 8-inch equivalents. This growth was mainly fueled by policy-driven channel inventory restocking, a trend continuing into Q3.
Regional revenue share remained stable: China 84%, U.S. 13%, Eurasia 3%. By application, consumer electronics accounted for 41%, smartphones 25%, and industrial/automotive 11% (automotive electronics shipments up 20% QoQ). 8-inch and 12-inch wafers contributed 24% and 76% of revenue respectively, with 8-inch revenue up 7% QoQ and capacity utilization outperforming peers.
Q2 saw growing demand for analog chips and accelerated domestic substitution, bringing SMIC incremental orders. Image sensor revenue rose over 20% QoQ, with radio frequency chips also seeing strong growth. Gross margin stood at 20.4% (-2.1pp QoQ due to price declines); capacity utilization hit 92.5% (+2.9pp QoQ), with both 8-inch and 12-inch utilization up, reaching a monthly capacity of 991,000 8-inch equivalents.
H1 revenue totaled $4.456 billion (+22.0% YoY); gross margin 21.4% (+7.6pp YoY); capital expenditure $3.301 billion. Q3 guidance: revenue +5%-7% QoQ, gross margin 18%-20%.
Q4 may see slower rush orders due to seasonality and inventory, but no tariff risks. Capacity remains tight, ensuring stable utilization, with full-year targets exceeding industry averages.
ICgoodFind: SMIC showed resilience in Q2, with promising prospects ahead.
