Shanghai Microelectronics Corporation (SMIC) reported a 61% year-over-year increase in Q4 net profit, reaching $172.85 million, surpassing analyst projections of $139.5 million. The surge reflects robust demand for advanced chips, driven by global investments in artificial intelligence, 5G infrastructure, and data center expansion. Analysts attribute the outperformance to SMIC’s strategic focus on mid-range semiconductor production, which aligns with market gaps left by U.S. export restrictions on cutting-edge chipmaking equipment. The company’s stock rose 8% following the earnings release, signaling investor confidence in its ability to capitalize on China’s domestic chip self-reliance initiatives.