SMIC posted a decline in second-quarter revenue on continuing weak chip demand

August 14, 2023: SMIC posted a decline in second-quarter revenue on continuing weak chip demand.

SMIC said second-quarter revenue totaled $1.56 billion, down 18% from the $1.9 billion logged in the same period in the previous year. Net income was $402.76 million, down by 21.7% from the $514.33 million recorded in the second quarter of 2022.

SMIC is China’s biggest foundry, manufacturing semiconductor chips that other firms design. The Chinese firm competes with Taiwan’s TSMC and South Korea’s Samsung, but analysts say its technology is several generations behind.

The Chinese foundry has been the target of U.S. sanctions since 2020. It was placed on a U.S. trade blocklist restricting its access to crucial foreign technology, allowing it to produce cost-efficient advanced chips.

SMIC has yet to obtain extreme ultraviolet lithography machines, which only the Dutch firm ASML can make. Without EUV machines, SMIC cannot produce advanced chips on a large scale at lower costs.

An ongoing slump in demand for specific chips that go into consumer products, such as memory, has also severely impacted SMIC and the likes of TSMC and Samsung.

The Semiconductor Industry Association said that global sales of semiconductors totaled $124.5 billion during the second quarter of 2023. This represents a 4.7% increase from the first quarter but is 17.3% below the second quarter of 2022.

About Us

We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.

Recent Posts

Transforming the delivery of Professional Services Worldwide |  Zain Ali

Manufacturers often struggle with generating accurate and timely quotes, delaying customer responses and risking profitability. Traditional quoting processes can take days or even weeks, while customers expect responses within 24 hours. Micro Estimating Systems addresses these challenges with advanced software that allows users to generate highly accurate quotes in minutes. By integrating with shop-specific data and automating feature recognition, their solutions ensure precision and speed, empowering manufacturers to make informed decisions and enhance their operational efficiency.

The must have Travel App after lockdown | Tiff Burns

Manufacturers often struggle with generating accurate and timely quotes, delaying customer responses and risking profitability. Traditional quoting processes can take days or even weeks, while customers expect responses within 24 hours. Micro Estimating Systems addresses these challenges with advanced software that allows users to generate highly accurate quotes in minutes. By integrating with shop-specific data and automating feature recognition, their solutions ensure precision and speed, empowering manufacturers to make informed decisions and enhance their operational efficiency.

The Technology Expert | Tarcisio Vergani

Manufacturers often struggle with generating accurate and timely quotes, delaying customer responses and risking profitability. Traditional quoting processes can take days or even weeks, while customers expect responses within 24 hours. Micro Estimating Systems addresses these challenges with advanced software that allows users to generate highly accurate quotes in minutes. By integrating with shop-specific data and automating feature recognition, their solutions ensure precision and speed, empowering manufacturers to make informed decisions and enhance their operational efficiency.

Perpetua Investment Group A Man of Action | Mehdi El Jazouli

Manufacturers often struggle with generating accurate and timely quotes, delaying customer responses and risking profitability. Traditional quoting processes can take days or even weeks, while customers expect responses within 24 hours. Micro Estimating Systems addresses these challenges with advanced software that allows users to generate highly accurate quotes in minutes. By integrating with shop-specific data and automating feature recognition, their solutions ensure precision and speed, empowering manufacturers to make informed decisions and enhance their operational efficiency.

Event Management Made Manageable | Kasper Larsen

Manufacturers often struggle with generating accurate and timely quotes, delaying customer responses and risking profitability. Traditional quoting processes can take days or even weeks, while customers expect responses within 24 hours. Micro Estimating Systems addresses these challenges with advanced software that allows users to generate highly accurate quotes in minutes. By integrating with shop-specific data and automating feature recognition, their solutions ensure precision and speed, empowering manufacturers to make informed decisions and enhance their operational efficiency.

Dynamic Leadership and Innovation | John Teasdale

Manufacturers often struggle with generating accurate and timely quotes, delaying customer responses and risking profitability. Traditional quoting processes can take days or even weeks, while customers expect responses within 24 hours. Micro Estimating Systems addresses these challenges with advanced software that allows users to generate highly accurate quotes in minutes. By integrating with shop-specific data and automating feature recognition, their solutions ensure precision and speed, empowering manufacturers to make informed decisions and enhance their operational efficiency.

SMIC posted a decline in second-quarter revenue on continuing weak chip demand