Semiconductor Manufacturing International (SHA:688981, HKG:0981) expects artificial intelligence-driven demand to persist in the second half after posting a surge in second-quarter results, boosted by higher selling prices.

The Shanghai-headquartered chip foundry reported attributable profit of $479.2 million in the quarter, up 262%, or more than threefold, from $132.5 million in the year-ago period, according to a report released after-market hours on Thursday.

Revenue grew 36.1% year over year to $3.01 billion on strong demand for artificial intelligence products, leading to higher selling prices for its wafer products.

Wafer shipments jumped 20% to 2.9 million during the quarter. SMIC manufactures 8-inch and 12-inch wafers at its facilities in Shanghai, Beijing, Tianjin and Shenzhen, and supplies its products to clients in the US, Europe, Japan, Taiwan and China.

The company's 12-inch wafers, used for advanced semiconductor chips, including computer processors, memory, and smartphone components, contributed 78.2% to SMIC's overall revenue during the quarter, while its 8-inch wafers made up the remaining 21.8%.

During the quarter, China accounted for 90.2% of SMIC's overall revenue, widening from 88.9% in the first quarter and 84.1% a year earlier.

Looking ahead, SMIC expects strong demand for AI products to persist, boosting demand for integrated circuit manufacturing. The company said it will "flexibly" reallocate its resources and increase capacity to alleviate supply chain constraints.

For the third quarter, revenue is expected to rise up to 4% on a seasonally adjusted basis, while its gross margin is forecast to jump by up to 28%.