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Semiconductor Manufacturing International Corp. SMIC, Chinas largest contract chip producer, reported earnings fell by more than one-fourth in the fourth quarter as consumer demand for smartphones and laptop computers fell.

Profits plummeted more than 26% year on year to US425. 5 million in the three months ended December 31, the Hong Kong-listed foundry announced on Thursday.

SMIC stated in November that decreased consumer electronics demand will weigh on its business forecast into the first half of 2023.

DECREASE IN DEMAND

According to Canalys, global smartphone shipments decreased 11% year to less than 1. 2 billion devices, the lowest level in a decade. According to Counterpoint Research, personal computer shipments are down 15%.

Also read New low for Chinese smartphone industry, sales in 2022 plunge to lowest level in over a decade The semiconductor sector has been suffering significant headwinds throughout the world, with worldwide semiconductor sales down over 15% year on year to US130. 2 billion in the fourth quarter, according to Semiconductor Industry Association figures.

Intel, which forecast a 20 per cent drop in sales in 2022, has been contemplating big lay-offs that might affect one-fifth of its workforce in some departments, Bloomberg reported in October, citing anonymous sources.

While SMIC never publicly admitted or denied the breakthrough, it did indicate that the Shanghai-based company was able to make inroads into advanced nodes below 10-nm without the highly advanced extreme ultraviolet machines manufactured by Dutch chip equipment giant ASML, which stopped exporting such tools to China in 2019 due to US pressure.

NEW FOUNDRY

The new foundry in Shenzhen had commenced production by the end of 2022, while trial production had begun in another foundry in Beijing, where mass production is projected to be delayed by one to two quarters due to a delay in the purchase of specific equipment, according to the firm on Thursday. Last year, SMIC raised its monthly capacity to 714,000 8-inch equivalent wafers, while total capital investment was 6.

Kumud Sharma

Kumud Sharma is the First Well-Known Female Journalist of the Journalism World of Himachal Pradesh. I am the Founder, Editor in Chief, Managing Director, Promoter of Diary Times. As a Female Journalist, With My Experience of More Than Nine Years, I Tell You Every News of Himachal Pradesh From The Ground Level With Absolutely Accurate and Correct Information, Be it the Politics of Himachal Pradesh or the Ground Reality, My Perspective On Every News Will Give You Assurance. I Assure You That Every News of Mine Will Comply With the Expertise and Fact Checking Policy.