2 1 Shi Ji Jing Ji Bao Dao·2025-08-08 12:17Core Viewpoint - Semiconductor foundry leader SMIC reported a second-quarter revenue of $2.209 billion, a 1.7% decrease quarter-on-quarter but a 16.2% increase year-on-year, with a net profit of $132.5 million, down 19% year-on-year, falling short of market expectations [1][2] Financial Performance - In Q2, SMIC's gross margin was 20.4%, a decrease of 2.1 percentage points quarter-on-quarter but an increase of 6.5 percentage points year-on-year [1] - For the first half of the year, SMIC's revenue reached $4.46 billion, a 22% increase compared to the same period last year, with a gross margin of 21.4%, up 7.6 percentage points year-on-year [3] Capacity Utilization and Industry Outlook - SMIC's capacity utilization rate in Q2 was 92.5%, an increase of 2.9 percentage points quarter-on-quarter and 7.3 percentage points year-on-year, indicating a recovery in industry demand [2][4] - The company expects Q3 revenue to grow by 5% to 7% quarter-on-quarter, with a gross margin guidance of 18% to 20% [2] Market Segmentation - In Q2, revenue from the Chinese market accounted for 84.1%, the U.S. market 12.9%, and the Eurasian market 3.0% [3] - The highest revenue contribution came from consumer electronics at 41.0%, followed by smartphones at 25.2%, and industrial and automotive sectors at 10.6%, with the latter showing continuous growth [3] Product Demand and Trends - Significant growth in demand for analog chips, particularly in fast charging and power management applications, is noted, with SMIC gaining incremental orders from domestic clients [4] - The automotive electronics segment saw a 20% quarter-on-quarter growth, driven by various types of automotive chips [3][4] Future Expectations - SMIC remains optimistic about future growth, aiming to exceed the average growth rate of comparable peers, with a focus on market demand changes [6] - The company anticipates stable demand in the smartphone market, with a projected flat global smartphone shipment volume by year-end [7] - Average selling prices (ASP) are expected to rise in Q3 due to the discontinuation of discounts on 12-inch wafer products [7]