AsianFin -- China’s leading semiconductor foundry SMIC said Friday that U.S. tariff policies have not caused the severe downturn the company initially anticipated. Strong domestic demand is expected to keep production capacity tight through October.

Co-CEO Zhao Haijun told analysts on a post-earnings call that while SMIC is not currently engaging customers regarding U.S. President Donald Trump’s proposed 100% tariffs on chip imports, the company anticipates a smaller impact than feared. This resilience is attributed to contingency measures implemented following the tariffs announced in April.