Chinese chip foundry Semiconductor Manufacturing International Corp (SMIC) said it signed a framework agreement for a 12-inch foundry production line in Tianjin with registered capital of $5 billion and planned investment of $7.5 billion.

SMIC spent $2.5 billion on capital expenditures in the first half of the year and increased its 8-inch equivalent capacity by 53,000 wafers per month.

SMIC reported revenue of $1.9 billion in second quarter of 2022, an increase of 3.3 percent QoQ from$1.84 billion in 1Q22, and 41.6 percent YoY from $1.34 billion in 2Q21.

SMIC’s gross profit was $750.5 million in 2Q22, compared to $750.3 million in 1Q22, and 85.3 percent YoY from $405.0 million in 2Q21.

SMIC’s gross margin was 39.4 percent in 2Q22, compared to 40.7 percent in 1Q22 and 30.1 percent in 2Q21.