Zheng Quan Shi Bao Wang·2025-08-08 07:43Core Insights - The company reported a revenue growth of 16.2% year-on-year for Q2, driven by inventory replenishment amid changing domestic and international policies [1] - The company anticipates a revenue increase of 5% to 7% in Q3, with stable gross margin guidance [3] Financial Performance - Q2 revenue reached $2.209 billion, with a year-on-year increase of 16.2% and a quarter-on-quarter decrease of 1.7% [1] - For the first half of the year, total revenue was $4.46 billion, reflecting a 22% year-on-year growth, with a gross margin of 21.4%, up 7.6 percentage points from the previous year [1] - Capital expenditures for the first half totaled $3.301 billion [1] Revenue Breakdown - Revenue by region in Q2: China (84%), USA (13%), Eurasia (3%), remaining stable compared to previous quarters [1] - Revenue by application in Q2: smartphones (25.2%), computers and tablets (15%), consumer electronics (41%), IoT and wearables (8.2%), industrial and automotive (10.6%) [1] Automotive Sector Growth - The automotive electronics segment saw a 20% quarter-on-quarter growth, with significant contributions from various types of automotive chips [2] - The company is well-prepared for future growth in the automotive sector, focusing on capacity layout and customer collaboration [2] Production and Capacity Utilization - Q2 gross margin was 20.4%, down 2.1 percentage points due to production fluctuations and changes in product mix [3] - Capacity utilization reached 92.5%, with both 8-inch and 12-inch wafer utilization improving [3] - The company’s 8-inch standard logic monthly capacity increased to 991,000 wafers by the end of Q2 [3] Market Outlook - The company expects stable smartphone shipment volumes for the year, with its market share increasing among smartphone clients [3] - The fourth quarter is traditionally a slow season, but the company does not foresee significant impacts on capacity utilization due to overall demand [4] Strategic Focus - The company will not enter the mainstream power device foundry market but will focus on meeting the needs of strategic international clients [4] - Future plans include establishing capacity for third-generation semiconductors like SiC and GaN based on "China for China" demand [4]