Mainland Chinese wafer foundry leader SMIC announced its third-quarter financial report on Friday, with revenue and profit both lower than market expectations. The company also warned that the fourth quarter will drag down revenue by 15% due to US sanctions, which also made CEO Zhao Haijun admit that SMIC may take more time to recover from a sluggish cycle.
According to foreign media reports, SMIC's third-quarter revenue was US$1.91 billion, lower than the expected US$1.93 billion, and profit of US$470 million was 47% higher than the same period last year, but it was still lower than the market's expectations of US$480 million, highlighting the current situation of the global economic recession and the plummeting demand for consumer electronics.
Not only that, the US government issued a new wave of export control measures for the mainland chip industry in early October. Unauthorized Americans, enterprises and organizations shall not assist or participate in the research and development or production of mainland chip manufacturers. The affected areas include supercomputers, artificial intelligence and military advanced process chip fields.
various situations have caused SMIC to downgrade its financial forecast for the fourth quarter, and its revenue may fall by 15% compared with the third quarter. Zhao Haijun said: "U.S. export restrictions bring new challenges to the supply chain, and it may take more time to recover from a sluggish cycle."
Zhao Haijun also mentioned, "Sanctions affect US customers and prevent them from selling advanced chips in the mainland, but SMIC's technology The capability and expansion plan did not violate US regulations, and the detailed impact needs further observation and evaluation. "In July this year, SMIC has mass-produced 7-nanometer chips and shipped them to customers, which has caused shock to the global chip industry. Even if the yield and scale are lost to major manufacturers such as TSMC, , Samsung , SMIC can produce 7-nanometer chips with 14-nanometer mature process equipment, which has demonstrated SMIC's strength and ambition.
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