Semiconductor Manufacturing International Corporation (SMIC), China's largest contract chipmaker, reported a 161.9% year-on-year increase in first-quarter profit to $188 million, with revenue rising 28.4% to $2.2 billion. Both profit and revenue missed analyst estimates of $222.4 million and $2.3 billion, respectively. Gross margin reached 23%. Despite the profit surge, SMIC's shares fell sharply, with its Hong Kong-listed stock dropping as much as 11% at one point to HKD42.10 and closing down nearly 7%. The Shanghai-listed shares fell 4.4%. The company warned of a potential 4% to 6% sequential revenue decline in the second quarter due to production disruptions and forecast a Q2 gross margin of 18% to 20%. SMIC's capacity utilization rate reached nearly 90% in the first quarter, and wafer shipments increased 15% quarter-on-quarter. R&D spending decreased to $148.9 million. Most of SMIC's revenue comes from mature-node chips, with over 84% of first-quarter revenue derived from Chinese customers. Advanced chips manufactured by SMIC have reportedly appeared in Huawei products. SMIC plans to invest more than $7 billion in 2025 to expand capacity and market share, focusing on automotive and industrial chip segments amid China's push for semiconductor self-sufficiency. The company cited ongoing tariff uncertainty and production yield issues as factors clouding its outlook for the second half of the year.