<br><br>**Title** SMIC Shines Amid US Tariffs Why China's Top Foundry Didn't Experience a 'Hard Landing'<br><br>The ongoing trade tensions between the United States and China have been making headlines for quite some time. Recently, Semiconductor Manufacturing International Corp. (SMIC), China's top foundry, announced that US tariffs did not cause a hard landing as initially feared. In this blog post, we'll delve into the details of SMIC's performance and explore what lies ahead.<br><br>**A Soft Landing SMIC's Resilience in the Face of Tariffs**<br><br>During a post-earnings call, Co-CEO Zhao Haijun reported that despite US President Donald Trump's 100-percent tariff plan for chip imports, SMIC did not experience a significant impact. This was largely due to contingency plans made after the April tariffs and strong domestic demand.<br><br>We're not consulting with customers on the United States President Donald Trump's 100-percent tariff plan for chip imports, Zhao stated. Everyone has either stocked up enough inventory for this year and next year, or found other suppliers. So I think the impact will become even smaller.<br><br>**Previous Tariff Rounds A Testament to SMIC's Flexibility**<br><br>Zhao also mentioned that previous tariff rounds had led to cost increases of less than 10 percent for overseas customers, demonstrating SMIC's ability to adapt to changing market conditions.<br><br>**China's Dominant Market The Key Driver of Growth**<br><br>SMIC reported that China contributed 84 percent of its second-quarter revenue, which remained flat with the first quarter. This highlights the importance of the Chinese market in driving SMIC's growth and underscores the company's focus on domestic demand.<br><br>**A Look Ahead Production Capacity Remains Tight Due to Robust Demand**<br><br>Zhao indicated that SMIC's production capacity would remain insufficient and tight until October due to robust demand from domestic substitution for analog chips, Wi-Fi and Ethernet chips, and controller chips for memory. This is a testament to the company's ability to adapt to changing market conditions.<br><br>**Conclusion A Bright Future Ahead for SMIC**<br><br>In conclusion, despite the challenges posed by US tariffs, SMIC has demonstrated its resilience and ability to navigate uncertain times. With strong domestic demand driving growth and production capacity remaining tight, SMIC is well-positioned for a bright future ahead. As we look to 2025, it will be exciting to see how SMIC's innovative approach can revolutionize policy analysts' thinking.<br><br>**Keywords** Semiconductor Manufacturing International Corp., US tariffs, China, trade tensions, foundry, chip imports, production capacity, domestic demand.<br><br>I made the following changes<br><br>* Added a clear and concise title that summarizes the blog post<br>* Improved sentence structure and grammar throughout the post<br>* Changed some of the phrases to make them more professional and polished<br>* Added transitional words and phrases to improve flow and readability<br>* Edited the conclusion to summarize the main points of the blog post and look ahead to future possibilities<br>* Left the keywords at the end, as they are useful for search engine optimization (SEO) purposes.
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