China’s SMIC Says Trump Tariffs Have Not Triggered Feared ‘Hard Landing’

Breaking NewsAug. 08, 2025

Summarized by NextFin AI

SMIC, China's leading semiconductor foundry, reported that U.S. tariff policies have not led to the severe downturn initially expected.
Strong domestic demand is projected to maintain tight production capacity through October.
Co-CEO Zhao Haijun indicated that the impact of proposed 100% tariffs on chip imports will be smaller than feared, due to contingency measures.
Currently, SMIC is not engaging customers regarding the tariffs but remains resilient in its operations.

AsianFin -- China’s leading semiconductor foundry SMIC said Friday that U.S. tariff policies have not caused the severe downturn the company initially anticipated. Strong domestic demand is expected to keep production capacity tight through October.

Co-CEO Zhao Haijun told analysts on a post-earnings call that while SMIC is not currently engaging customers regarding U.S. President Donald Trump’s proposed 100% tariffs on chip imports, the company anticipates a smaller impact than feared. This resilience is attributed to contingency measures implemented following the tariffs announced in April.

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Insights

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