CNA – Chinese chip foundry Semiconductor Manufacturing International Corp (SMIC) yesterday reported a 34.7 per cent rise in third-quarter revenue and lifted its capital expenditure plan, but missed estimates and warned investors about the impact of export controls from the United States (US)
The company generated revenue of USD1.91 billion in the quarter, up from USD1.42 billion in the same period a year earlier but below analyst expectations of USD1.94 billion.
Net profit, meanwhile, rose 54.1 per cent to USD574.4 million, while gross profit increased 58.6 per cent to USD742.2 million.
In its filing, SMIC said weak demand in the consumer market, coupled with new export controls from the US would weigh on its fourth-quarter results.
The new rules will have an “adverse impact” on production and operations, and the company is working on clarifying certain definitions in the rules, it added.
Despite this, the company lifted its capital expansion plan for the year to USD6.6 billion from USD5 billion.
Backed by funding from Beijing, SMIC is China’s best hope for becoming a global leader in chip manufacturing that can rival Taiwan Semiconductor Manufacturing Corporation (TSMC), the industry’s largest foundry.
Earlier yesterday, Chinese chip fab Hua Hong Semiconductor Ltd reported a 39.5-per-cent year-on-year rise in revenue to a record high of USD629.9 million, while net profits were also up 83.7 per cent.
