Chinese semiconductor giants Semiconductor Manufacturing International Corporation (SMIC) and Hua Hong Grace Semiconductor on Thursday posted strong results for the second quarter of 2026. The rapid growth of China's domestic chip manufacturing sector highlights the strong industrial spillover and broader boost generated by artificial intelligence (AI), an industry expert said.

Chinese firms are quickly catching up with industry leaders, giving the country a leg up in the AI race as well

SMIC reported Q2 2026 profit of $479.2 million, more than tripling year-over-year and nearly doubling analyst estimates, driven by surging AI