China has sought to increase its self-reliance in the field of semiconductors, which are used in everything from televisions and cars to weapons and supercomputers.

The United States has moved to deny Chinese firms access to its advanced technology and tightened curbs on exports of state-of-the-art chips and the equipment to make them.

Those restrictions have targeted Semiconductor Manufacturing International Corporation (SMIC), which is listed in Hong Kong and in its home city Shanghai.

SMIC reported in a filing to the Hong Kong Stock Exchange that second-quarter profit attributable to owners stood at $132 million, down 19.5 percent compared to the equivalent period last year.

The drop comes after SMIC saw profit jump 161.9 percent year-on-year in the first three months of 2025.

SMIC said second-quarter revenue rose 16.2 percent year-on-year to $2.2 billion, but was down 1.7 percent on the previous quarter.

US President Donald Trump announced hours earlier a 100 percent tariff on semiconductors from firms that do not invest in the United States.

More than 84 percent of SMIC's revenue during the first quarter came from customers in China, the results said.

The company also said it expects revenue to increase by five to seven percent in the next quarter compared to the April-June period.

SMIC acknowledged this year that its 2024 profit had plunged significantly from 2023 on the back of souring trade relations between Beijing and Washington.