Chipmaker ASMC sees near-term industry weakness

Advanced Semiconductor Manufacturing Corp (ASMC), which saw a sharp fall in net profit in the first half, predicts slower growth for the industry this year owing to weakness in the global economy.

ASMC president Wang Qingyu said the global semiconductor market was beset by "limited visibility" caused by "slow consumer spending and the lack of consumer confidence", according to a filing with the Hong Kong stock exchange yesterday.

"During the first half of this year, the major economies continued to see weak recovery while the Chinese economy showed clear signs of a slowdown," Wang said.

"As a result, the company is taking a cautious approach to its business operations and financial performance in the near term."

Shanghai-based ASMC, which operates two wafer-fabrication plants on the mainland, reported an 86 per cent decrease in net profit to 3.5 million yuan (HK$4.4 million) in the six months to June.

Wang attributed that decline to the typical slow season in the early part of the year, prolonged annual maintenance shutdowns of its factories and "an inventory correction in the semiconductor supply chain".