China’s top chip maker SMIC warns on negative impact from US export controls after posting flat third-quarter revenue
- SMIC said the new export controls imposed by Washington, along with weak demand, would weigh on business this quarter
- China’s top foundry warned sluggish demand in the smartphone and consumer electronics sectors would also hit performance
Semiconductor International Manufacturing Corp (SMIC) said it is assessing in more detail the impact from the latest US export control measures on its operations, after China’s top foundry reported flat revenue in the third quarter.
SMIC, which is already on a US export control list, said in a corporate filing late on Thursday that the new export controls imposed by Washington, along with weak demand, would weigh on business this quarter.
“Sluggish demand in the smartphone and consumer electronics sectors, coupled with the need for some customers to take time to interpret new US export control regulations, [means that] fourth-quarter revenue is expected to decline 13 per cent to 15 per cent,” SMIC said.
This is the first time that SMIC, China’s best hope to achieve greater self-sufficiency in advanced chip manufacturing, has provided an initial assessment of the impact from the new US Bureau of Industry and Security rules released last month.
SMIC said the new regulations would have a negative impact on its production and operations, and it is trying to clarify certain definitions in the latest US rules.