China chip maker SMIC plans to spend $7 billion on new equipment this year. The company will keep all profits instead of sharing money with investors. SMIC already spent $1.4 billion in early 2025, much less than last year. They expect to maintain the same spending level next year.
SMIC needs money because Chinese companies want more chips after the US rules stopped Taiwan from selling to Huawei. The finance leader said they must build more factories and gain market share. Car companies ordered more chips lately, showing better business conditions. SMIC worries about new tariffs that might change prices or customer behavior. The company cannot predict what will happen after summer, especially from August through December.
SMIC needs money because Chinese companies want more chips after the US rules stopped Taiwan from selling to Huawei. The finance leader said they must build more factories and gain market share. Car companies ordered more chips lately, showing better business conditions. SMIC worries about new tariffs that might change prices or customer behavior. The company cannot predict what will happen after summer, especially from August through December.
