Core Viewpoint - The article discusses the Q2 2025 financial results of two leading semiconductor foundries in China, SMIC and Hua Hong Semiconductor, highlighting their revenue, profit margins, and market performance. SMIC Summary - In Q2 2025, SMIC reported total sales revenue of $2.209 billion, a decrease of 1.7% quarter-over-quarter, with a gross margin of 20.4%, down 2.1 percentage points [2] - The net profit attributable to shareholders was $132 million, representing a year-over-year decline of 19.5% and a quarter-over-quarter decline of 29.5% [3] - Revenue by application showed an increase in industrial and automotive segments to 10.6% and smartphones to 25.2%, while computer and tablet revenue decreased to 15% [3] - Capacity utilization in Q2 was 92.5%, up 0.9 percentage points from Q1, with monthly capacity increasing to approximately 990,000 8-inch equivalent wafers [4] - Capital expenditure for Q2 was $1.885 billion, compared to $1.415 billion in Q1 [5] - SMIC's guidance for Q3 indicates a revenue growth of 5% to 7% and a gross margin of 18% to 20% [10] Hua Hong Semiconductor Summary - Hua Hong Semiconductor achieved sales revenue of $566.1 million in Q2 2025, an increase of 18.3% year-over-year and 4.6% quarter-over-quarter, with a gross margin of 10.9%, up 0.4 percentage points [6] - The net profit attributable to shareholders was approximately $7.95 million, reflecting a year-over-year increase of 19.2% and a quarter-over-quarter increase of 112.1% [7] - The Chinese market contributed the highest revenue, reaching $470 million, a year-over-year increase of 21.8%, accounting for 83% of total revenue [8] - Revenue by technology platform showed significant growth in analog and power management products, with sales reaching $161.2 million, up 59.3% year-over-year [9] - Capacity utilization for Hua Hong in Q2 was 108.3%, up 5.6 percentage points, with shipments of 1.305 million 8-inch equivalent wafers, an 18% year-over-year increase [10] - Hua Hong's outlook for Q3 anticipates sales revenue between $620 million and $640 million, with a gross margin expected to be around 10% to 12% [10]