Chinese chipmaker SMIC increases prices on strong AI demand

China’s top foundry, Semiconductor Manufacturing International Corp, said on Friday ​that AI-related demand would continue to underpin ​orders for its production, and that it had raised prices for its ​most sought-after capacity.

Co-CEO Zhao Haijun said on an earnings call that SMIC raised prices following negotiations with customers in the first quarter, and that it would charge more for wafers processed in the third quarter.

“We believe we’ve reached top-tier ‌industry standards in ⁠these areas,” ⁠Zhao said. “Since there’s still a big gap between industry-leading wafer prices and SMIC’s current prices, we need to negotiate with ​customers for fairer pricing.”