Semiconductor Manufacturing International (HKG:0981, SHA:688981), or SMIC, expects AI-driven industrial momentum and spillover effects to persist in the second half of this year, according to its earnings report.
The company will flexibly allocate existing capacity and accelerate the qualification of newly added capacity to help ease supply constraints across the industry chain, it said.
Co-Chief Executive Officer Zhao Haijun said during an earnings call that rising supply chain costs are being passed through to the manufacturing sector, adding that SMIC will actively respond to the pressure and seek to minimize its impact.
SMIC is "never the first to raise prices, nor is it the one with the highest price," Zhao said, adding that the company nevertheless has a reputation in the industry for negotiating reasonable prices with customers.