SMIC Eyes Tariff Impact Amid Uncertain Q2 Outlook

Semiconductor Manufacturing International Corporation (SMIC), China's top chip foundry, is closely watching the impact of tariffs on customer demand, according to co-CEO Zhao Haijun. Speaking during an earnings call on Friday, Zhao noted that visibility for the second quarter remains unclear, although past tariff actions have prompted a slight uptick in orders from U.S. clients.

Zhao emphasized that while U.S. import tariffs led to increased orders last quarter, the overall effect on SMIC's business was limited. The company's cautious tone comes as geopolitical tensions and trade restrictions continue to cloud the global semiconductor outlook.

In its latest financial report, SMIC projected a revenue decline of up to 6% for the second quarter. The company cited weaker market conditions and ongoing macroeconomic headwinds as contributing factors. Despite short-term uncertainty, SMIC remains focused on monitoring market developments and adjusting its strategies accordingly.

The Shanghai-based foundry, which plays a key role in China's push for semiconductor self-sufficiency, is navigating a challenging environment shaped by U.S. export controls and shifting global supply chains. SMIC has faced restrictions from the U.S. government in recent years, which have limited its access to advanced chipmaking tools.

As the chip industry grapples with slowing demand and continued geopolitical friction, SMIC's near-term outlook reflects the broader concerns facing semiconductor firms worldwide. Analysts remain cautious, noting that the sector's recovery will likely depend on stabilization in global trade policies and improved visibility across markets.

With tariff uncertainties and tech tensions persisting, SMIC's ability to adapt will be crucial as it seeks to maintain growth in a rapidly evolving semiconductor landscape.