Shang Hai Zheng Quan Bao·2025-08-07 14:03Core Insights - Both SMIC and Hua Hong Semiconductor reported significant year-on-year revenue growth in Q2, with SMIC's revenue at $2.209 billion, a 16.2% increase from $1.901 billion in Q2 2024, and Hua Hong's revenue at $566.1 million, an 18.3% increase from $478.5 million in the same period [4][6][20] - The capacity utilization rates for both companies saw substantial improvements, with SMIC nearing full capacity at 92.5% and Hua Hong exceeding 100% at 108.3% [10][12] Revenue Growth - SMIC's Q2 revenue was $2.209 billion, down 1.7% from Q1 2025 but up 16.2% year-on-year [4] - Hua Hong's Q2 revenue reached $566.1 million, reflecting a 4.6% increase from Q1 2025 and an 18.3% increase year-on-year [6][12] Profitability - SMIC reported a gross profit of $450 million in Q2, with a gross margin of 20.4%, up from 13.9% in Q2 2024 [4] - Hua Hong's gross margin improved to 10.9%, up 0.4 percentage points year-on-year [6][12] Capacity Utilization - SMIC's capacity utilization increased from 89.6% in Q1 2025 to 92.5% in Q2 2025, a 2.9 percentage point increase [10] - Hua Hong's capacity utilization rose from 102.7% in Q1 2025 to 108.3% in Q2 2025, marking a significant improvement [12] Market Demand - SMIC noted a growing revenue share from industrial and automotive sectors, increasing from 8.1% in Q2 2024 to 10.6% in Q2 2025 [15] - Hua Hong highlighted strong market demand for flash memory products, power management products, and MOSFETs in Q2 [15] Future Outlook - Hua Hong expects Q3 revenue to be between $620 million and $640 million, with a gross margin forecast of 10% to 12% [20]