Chinese chip maker SMIC’s sales fall for third straight quarter despite boost from Huawei’s 5G smartphone revival

Sales of Semiconductor Manufacturing International Corp (SMIC) fell for the third consecutive quarter, reflecting the impact of a global smartphone slump and Washington’s broadening campaign to curb China’s technology sector.

The Shanghai-based chip maker reported a 15 per cent fall in revenue in the September quarter to US$1.62 billion, versus an average projection for US$1.64 billion. Net income dropped 80 per cent to US$94 million, compared with estimates for US$178.1 million.

The numbers missed despite hopes that the surprise popularity of a new range of 5G smartphones from Huawei Technologies would help offset lost sales.

China’s largest chip maker helped Huawei build the 7-nanometre processor for the Mate 60 Pro, regarded as a major achievement for two companies that the US blacklisted years ago over national security concerns. Riding a wave of nationalist fervour, the device has sold out rapidly, taking business away from Apple’s iPhone.