Shang Hai Zheng Quan Bao·2025-08-08 00:27Core Insights - Both SMIC and Hua Hong Semiconductor reported significant year-on-year revenue growth in Q2, with SMIC's revenue reaching $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 the previous year [2][4][12] - Both companies achieved high capacity utilization rates, 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 [2] - Hua Hong's Q2 revenue was $566.1 million, showing a 4.6% increase from Q1 2025 and an 18.3% increase year-on-year [4][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 [2][4] - Hua Hong's gross margin was 10.9%, reflecting a year-on-year increase of 0.4 percentage points [4][12] Capacity Utilization - SMIC's capacity utilization increased from 89.6% in Q1 2025 to 92.5% in Q2, and from 85.2% year-on-year [10][12] - Hua Hong's capacity utilization rose from 102.7% in Q1 2025 to 108.3% in Q2, marking a significant increase from 97.9% year-on-year [12] Market Segments - SMIC's revenue from industrial and automotive sectors increased to 10.6% of total revenue, up from 8.1% in Q2 2024 [14] - Hua Hong reported strong demand for flash products, super junction MOSFETs, and power management products in Q2 [16] Future Outlook - SMIC anticipates a revenue growth of 5% to 7% in Q3 2025, with a gross margin between 18% and 20% [17] - Hua Hong expects Q3 revenue to be between $620 million and $640 million, with a gross margin of 10% to 12% [19]