SHANGHAI – Chinese language chip maker Semiconductor Manufacturing Worldwide Corp (SMIC) on Friday reported a 42% leap in second-quarter income but in addition mentioned the sector was going through some “panic and uncertainty”.
A slowdown in demand for smartphones particularly has pushed down costs for sure chips, co-CEO Zhao Haijun advised traders on an earnings name.
His remarks echo feedback from different chip firms which have warned that a weakening international economic system and a re-balancing of provide and demand may quickly result in a glut for some forms of semiconductors.
Reminiscence chip maker Micron Know-how has lower its current-quarter income forecast citing waning demand for PCs and smartphones, whereas GPU chip maker Nvidia has warned of weak demand for its gaming enterprise.
SMIC‘s income for the April-June quarter got here in at $1.9 billion, according to a Refinitiv consensus estimate.
Web revenue slid by 1 / 4 to $514.3 million as the corporate poured funds into capability enlargement, however nonetheless beat a mean estimate from analysts of $475 million.
Final yr, on the peak of the worldwide chip scarcity, the corporate dedicated to opening new fabs in Shanghai, Beijing, and Shenzhen. The brand new initiatives “are progressing as deliberate,” Zhao mentioned.
He added that the corporate spent $2.5 billion within the first half of the yr, and had elevated its 8-inch wafer manufacturing capability by 53,000 wafers monthly.
SMIC additionally mentioned Zhao would step down as an govt board member to give attention to his co-CEO duties.
Former Arm govt William Tudor Brown resigned as unbiased non-executive director of the board, changed by Wu Hanming, an trade veteran who labored at Intel earlier than returning to China.
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