China’s top chip foundry SMIC reports lower revenue and profit as US sanctions continue to bite amid sluggish demand
- Net income dropped 21.7 per cent year on year to US$402.76 million in the second quarter, as revenue fell 18 per cent to US$1.56 billion
- Demand for electronic products is ‘below expectation’ while inventory remains high, co-CEO says
Semiconductor Manufacturing International Corp (SMIC), China’s top contract chip maker, saw both its revenue and net profit extend their fall in the second quarter amid US sanctions and sluggish demand for consumer electronics.
Revenue fell 18 per cent to US$1.56 billion from US$1.9 billion in the same period last year, according to the company’s latest financial results, released on Thursday. Revenue grew 6.7 per cent compared with the first quarter.
Net income for the three months ending June 30 dropped 21.7 per cent to US$402.76 million from US$514.22 million in the second quarter of 2022.
While economic activity has returned to normal, demand for electronic products is still “below expectation” and inventory remains high, Zhao Haijun, co-CEO of SMIC, said on an earnings call.
