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

SMIC reported a 15 per cent fall in revenue in the September quarter to US$1.62 billion, missing analysts’ projection of US$1.64 billion

Net income dropped 80 per cent to US$94 million, compared with estimates for US$178.1 million

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Shares of Semiconductor Manufacturing International Corp have climbed roughly 40 per cent since Huawei Technologies introduced its Mate 60 Pro 5G smartphone in late August. Photo: Shutterstock

Published: 9:02pm, 9 Nov 2023Updated: 9:16pm, 9 Nov 2023

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.

SMIC is one of the highest-profile companies at the heart of Beijing’s ambitions to build a world-class tech sector less reliant on American innovations.

A Kirin 9000s chip fabricated in China by Semiconductor Manufacturing International Corp is taken from a Mate 60 Pro 5G smartphone made by Huawei Technologies on September 3, 2023. Photo: Bloomberg

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.