Latest news with #ZhaoHaijun
South China Morning Post
2 days ago
- Business
- South China Morning Post
China's SMIC downplays impact of Trump's plan to impose 100% tariff on chip imports
Semiconductor Manufacturing International Corp (SMIC), mainland China's largest contract chipmaker, on Friday downplayed the potential impact of US President Donald Trump 's proposed 100 per cent tariff on imported chips, as stout domestic demand is expected to continue. 'Our overall capacity remains in a state of demand exceeding supply,' SMIC co-CEO Zhao Haijun said in a briefing after the company reported its second-quarter financial results. '[Even if growth in demand slows], there will be no significant impact on our utilisation rate.' He said the company has already helped clients build up a certain level of inventory in the first three quarters of the year. Orders and shipments are expected to slow in the fourth quarter, which is the typical off-season for the industry. Apart from citing SMIC's limited exposure to the US market and production at its factories running at full capacity, Zhao pointed out that previous tariff disputes resulted in a less than 10 per cent impact on SMIC's overseas clients. His assessment reflected Shanghai -based SMIC's strong confidence in its current global market mix, as China accounted for 84.1 per cent of the firm's sales in the three months to June. Revenue share from the Americas fell to 12.9 per cent last quarter, from 16 per cent a year earlier. SMIC reported second-quarter revenue of US$2.21 billion, up 16.2 per cent from US$1.9 billion a year earlier, but down 1.7 per cent from the previous quarter's US$2.25 billion. Net profit attributable to shareholders reached US$132.5 million last quarter, down 19.5 per cent from US$164.6 million a year ago. That also marked a 29.5 per cent decline from US$188 million in the first quarter.
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
Chip Maker SMIC Sees Limited Impact of Trump's Tariffs
China's largest chip maker, Semiconductor Manufacturing International Corp., 981 -8.23%decrease; red down pointing triangle said the U.S. tariffs should continue to have a limited impact as demand from domestic clients is increasing sharply and overseas clients are better prepared for the headwinds. 'At least until around October this year, SMIC's production capacity will still be in short supply' as the expected hard landing of tariffs didn't happen, SMIC co-chief executive Zhao Haijun said Friday in a post-earnings call.
Yahoo
3 days ago
- Business
- Yahoo
China's SMIC says Trump tariffs did not cause expected 'hard landing'
By Che Pan and Joe Cash BEIJING (Reuters) -China's top foundry SMIC's co-CEO said on Friday that U.S. tariff policy had not resulted in the "hard landing" that the company was initially worried about and that strong domestic demand will keep its production capacity tight until October. Zhao Haijun, co-CEO of Semiconductor Manufacturing International Corp (SMIC), told a post-earnings call that the company is not consulting with customers regarding U.S. President Donald Trump's 100% tariff plan on chip imports but expects the impact could be smaller due to contingency plans that had been made after tariffs were announced in April. China raised additional duties on U.S. goods to 125% in April after Trump effectively raised tariffs on Chinese goods to 145%. Trump said on Wednesday the United States will impose a tariff of about 100% on imports of semiconductors, although that will not apply to companies that are manufacturing in the U.S. or have committed to do so. SMIC was blacklisted by the U.S. commerce department in 2020. China is the dominant market for SMIC, accounting for 84% of its revenue in the second quarter, unchanged from the first quarter, while the U.S. contributed 12.9%, slightly up from 12.6%. SMIC's second-quarter revenue rose 16.2% year-on-year to $2.2 billion. Its profit attributable to owners of SMIC declined 19.5% to $132.5 million, missing analysts' estimates of $183.35 million, according to LSEG data. SMIC's Hong Kong-traded shares were down more than 5% on Friday. Zhao said the previous rounds of tariffs resulted in less than 10% of cost increases at its overseas customers. "After these past few months, everyone has either stocked up enough inventory for this year and next year, or found other suppliers," Zhao said, "So I think the impact will become even smaller." Zhao said SMIC's production capacity remains insufficient and would remain tight until October due to robust demand from domestic substitution.
Yahoo
3 days ago
- Business
- Yahoo
China's SMIC says Trump tariffs did not cause expected 'hard landing'
By Che Pan and Joe Cash BEIJING (Reuters) -China's top foundry SMIC's co-CEO said on Friday that U.S. tariff policy had not resulted in the "hard landing" that the company was initially worried about and that strong domestic demand will keep its production capacity tight until October. Zhao Haijun, co-CEO of Semiconductor Manufacturing International Corp (SMIC), told a post-earnings call that the company is not consulting with customers regarding U.S. President Donald Trump's 100% tariff plan on chip imports but expects the impact could be smaller due to contingency plans that had been made after tariffs were announced in April. China raised additional duties on U.S. goods to 125% in April after Trump effectively raised tariffs on Chinese goods to 145%. Trump said on Wednesday the United States will impose a tariff of about 100% on imports of semiconductors, although that will not apply to companies that are manufacturing in the U.S. or have committed to do so. SMIC was blacklisted by the U.S. commerce department in 2020. China is the dominant market for SMIC, accounting for 84% of its revenue in the second quarter, unchanged from the first quarter, while the U.S. contributed 12.9%, slightly up from 12.6%. SMIC's second-quarter revenue rose 16.2% year-on-year to $2.2 billion. Its profit attributable to owners of SMIC declined 19.5% to $132.5 million, missing analysts' estimates of $183.35 million, according to LSEG data. SMIC's Hong Kong-traded shares were down more than 5% on Friday. Zhao said the previous rounds of tariffs resulted in less than 10% of cost increases at its overseas customers. "After these past few months, everyone has either stocked up enough inventory for this year and next year, or found other suppliers," Zhao said, "So I think the impact will become even smaller." Zhao said SMIC's production capacity remains insufficient and would remain tight until October due to robust demand from domestic substitution.
South China Morning Post
09-05-2025
- Business
- South China Morning Post
China's top chipmakers see shares plunge amid tariff uncertainty, despite revenue growth
China's largest chip foundries, Semiconductor Manufacturing International Corporation (SMIC) and Hua Hong Semiconductor, saw their stock prices plunge after warning of potential challenges in the second half of the year amid US-China tensions. Advertisement SMIC, the country's biggest chipmaker, expected a 4 to 6 per cent sequential drop in second-quarter revenue, citing 'fab production fluctuation' as a cause that led to a decrease in average selling prices, co-CEO Zhao Haijun said in an earnings call on Friday. The company noted in its earnings report on Thursday that the second half of the year would present 'both opportunities and challenges', as it worked to bolster its 'adaptability and risk resilience'. Hua Hong, SMIC's smaller rival, echoed concerns about the business environment in the months ahead. 'The entire semiconductor industry will face greater uncertainties in terms of customer demand, procurement costs, and the supply chain landscape due to recent changes in the global environment and related policies,' the company said in its Thursday earnings report. Still, Hua Hong expected a sequential rise in second-quarter revenue to between US$550 million and US$570 million. Advertisement SMIC and Hua Hong's Hong Kong-listed shares declined on Friday by 4.8 per cent and 7.9 per cent, respectively.
