SMIC and Hua Hong forecast Q2 growth driven by AI demand
SMIC and Hua Hong Semiconductor, two prominent Chinese semiconductor manufacturers, have predicted an increase in revenue for the second quarter, fueled by a rise in artificial intelligence demand and a shortage in memory supply. SMIC anticipates its Q2 revenue to range from US$2.86 billion to US$2.91 billion, a rise from US$2.51 billion in Q1. Meanwhile, Hua Hong expects its Q2 revenue to fall between US$690 million and US$700 million, up from US$661 million in the previous quarter. SMIC remains positive about its annual performance due to strong customer orders and plans to allocate resources flexibly. Hua Hong's chairman, Bai Peng, minimized concerns regarding US export restrictions on their new Fab 9B in Jiangsu, which began construction in March, and expressed hope that the upcoming Xi-Trump discussions might ease these controls.
Key facts
- SMIC expects Q2 revenue of US$2.86-2.91 billion, up from US$2.51 billion in Q1.
- Hua Hong expects Q2 revenue of US$690-700 million, up from US$661 million in Q1.
- Growth is driven by AI demand and memory supply crunch.
- SMIC is optimistic about full-year operations based on customer demand.
- Bai Peng downplayed US export controls impact on Hua Hong's capacity expansion.
- Hua Hong's Fab 9B in Jiangsu began construction in March.
- Reuters reported in April that Washington asked chip equipment firms to halt shipments to Hua Hong.
- Bai hopes Xi-Trump meetings could relax US export controls.
Entities
Institutions
- Semiconductor Manufacturing International Corporation (SMIC)
- Hua Hong Semiconductor
- Hong Kong Stock Exchange
- Reuters
- SMIC
- Hua Hong
- Hong Kong stock exchange
Locations
- China
- Jiangsu
- United States
- Hong Kong