CHINA’S largest chipmaker Semiconductor Manufacturing International Corp (SMIC) reported on Thursday (Nov 7) a 58.3 per cent jump in third quarter net profit as the sector showed signs of recovery following a prolonged downturn since late 2022.
Net income totalled US$148.8 million for July-to-September quarter but fell short of analysts’ estimates of US$199.71 million, according to LSEG data.
Revenue for the period rose by 34 per cent to 2.17 billion, in line with market expectations of US$2.2 billion, and SMIC reported a gross profit margin of 20.5 per cent per cent, above its previous guidance of 18 to 20 per cent.
Global semiconductor sales rose 23.2 per cent to US$166 billion in the third quarter, with the Chinese market growing 22.9 per cent, according to the Semiconductor Industry Association.
SMIC, which mainly produces mature node chips for less sophisticated electronics, gained attention after teardown analyses showed it manufactured advanced chips for Huawei’s premium smartphones, including the Mate 60 launched last August and the Pura 70 series released in April.
However, analysts believe advanced chip production remains a small portion of SMIC’s business. The company has yet to significantly benefit from the artificial intelligence boom that has driven demand for advanced chips and boosted rivals like TSMC.
Capital expenditure totalled US$1.2 billion for the quarter, compared with US$2.13 billion in the same period last year. REUTERS
