Semiconductor Manufacturing International Corp. posted a better-than-expected quarterly profit thanks to robust demand for Huawei Technologies’s marquee smartphones powered by components made by the Shanghai-based chipmaker, reports Caixin. Net income reached $174.7 million in the three months ending in December, compared with the average analyst estimate of $139.1 million. Revenue totaled $1.68 billion, the company said Tuesday, versus analysts’ projection of $1.66 billion.
As China’s top contract chipmaker, SMIC is capable of making advanced 7-nanometer chips that can power smartphones and laptops, though its technology is still years behind industry leader Taiwan Semiconductor Manufacturing Co. Ltd.
The Chinese chipmaker was instrumental in Huawei’s surprise comeback last year as it produced 7nm processors for the Mate 60 Pro smartphones. With help from SMIC, Huawei was able to return to the 5G handset market after years of U.S. sanctions that restricted its access to advanced chips and stifled its smartphone business.