Semiconductor Manufacturing International Corp. (SMIC), recognized as China's leading contract chipmaker, announced that the ongoing boom in artificial intelligence (AI) is significantly increasing demand for peripheral AI chips, which are components used outside of core AI processors [1]. According to a company spokesperson, the 'spillover effects' from heightened AI investments are supporting strong pricing for these peripheral chips, despite ongoing weakness in traditional markets such as smartphones and automobiles [1].
SMIC emphasized that, due to this robust demand, there is 'no chance' the company will lower its prices for peripheral chip sectors, even as other segments face softness [1]. The company’s statement reflects a confident outlook regarding its pricing power in the current market environment, driven by AI-related demand [1].
No specific financial figures, technical data, or analyst projections were provided in the article. The market sentiment conveyed by SMIC is notably positive, as the company underscores its ability to maintain pricing despite challenges in other end markets [1].
CONCLUSION
SMIC is leveraging strong AI-driven demand to uphold its peripheral chip prices, signaling confidence in its market position. Despite weakness in smartphones and automotive chips, the company sees no need to reduce prices, highlighting the positive impact of AI investments on its business.