TECH - China's Top Chipmaker SMIC Sees Profit Margin Plummet To 15-Year Low Amid US Export Controls | Benzinga
China’s Semiconductor Manufacturing International Corp has reported a significant drop in its profit margin, reaching its lowest level since 2009. The company expects further decline as it expands its capacity to meet the growing demand from Huawei Technologies Co. and other clients.
What Happened: Despite a 19.7% increase in revenue to $1.75 billion for the first quarter of 2024, SMIC’s profit plummeted by 68.9% from the previous year to $71.7 million. This led to a gross margin of 13.7%, the lowest since the global financial crisis in 2009, reported Nikkei Asia on Thursday.
The company anticipates a further decline in its gross margin, to approximately 9% to 11% for the current quarter. This is attributed to the increased depreciation of equipment as the company expands ...