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SMIC, the country’s biggest chipmaker, expected a 4 to 6 per cent sequential drop in second-quarter revenue, citing “fab production fluctuation” as a cause that led to a decrease in average selling prices, co-CEO Zhao Haijun said in an earnings call on Friday.
The company noted in its earnings report on Thursday that the second half of the year would present “both opportunities and challenges”, as it worked to bolster its “adaptability and risk resilience”.
Hua Hong, SMIC’s smaller rival, echoed concerns about the business environment in the months ahead. “The entire semiconductor industry will face greater uncertainties in terms of customer demand, procurement costs, and the supply chain landscape due to recent changes in the global environment and related policies,” the company said in its Thursday earnings report.
Still, Hua Hong expected a sequential rise in second-quarter revenue to between US$550 million and US$570 million.
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SMIC and Hua Hong’s Hong Kong-listed shares declined on Friday by 4.8 per cent and 7.9 per cent, respectively.
