China’s top chipmaker, Semiconductor Manufacturing International Corporation (SMIC), is keeping a close eye on how US tariffs might impact demand. Co-CEO Zhao Haijun told analysts during an earnings call that the company’s US customer orders actually rose in the last quarter, despite higher US tariffs. The overall impact so far has been minimal.
SMIC’s revenue dropped as much as 6% in the second quarter of 2025. The company is a key player in China’s chip industry, competing with Taiwan’s TSMC, the world’s largest chipmaker, which controls over 90% of the global market for advanced chip production. Zhao said it’s hard to predict what will happen in the second half of the year.
US Tariffs and Chip Demand
The US tariffs on Chinese goods, including chips, have raised concerns about their impact on demand. SMIC is watching the situation closely, but so far, the effects have been limited. The company’s revenue decline in the second quarter was likely due to various factors, including the global chip market trends.
SMIC is one of China’s biggest hopes for challenging TSMC’s dominance in advanced chip production. The global chip market is highly competitive, with companies constantly innovating and improving their manufacturing processes.