TECH - TSMC Rival SMIC Reports Significant 80% Profit Drop In Q3 Earnings Amid Weak Global Demand | Benzinga
Semiconductor Manufacturing International Co. (SMIC), the largest chipmaker in China, has reported a severe 80% fall in its third-quarter profits.
What Happened: The profit decline is attributed to a global demand weakness affecting foundries. The net income for the quarter ending in September plummeted 80% year-on-year, overshadowing the 64% drop experienced in the second quarter of 2019, based on company data, reported CNBC.
SMIC posted a third-quarter revenue of $1.62 billion, marking a 15% decrease year-on-year. The net income for the same period was $93.98 million, significantly lower than the anticipated $165.1 million by analysts.
The Beijing-based powerhouse in the domestic semiconductor industry has been grappling with U.S. sanctions that limit China’s chipmaking technology and exports.
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