China’s largest chipmaker Semiconductor Manufacturing International (SMIC) reported quarterly revenue declines for the first time in three years. In this respect informs CNBC.
SMIC’s first-quarter revenue was $1.46 billion, down 20.6 percent year on year. The most recent decline in the company’s sales was recorded in the third quarter of 2019. Net income fell 48% to $231.1 million.
Market experts agree that this is due to excess supply in the world market against the backdrop of low demand. The result is also affected by the sanctions imposed by the United States.
According to CNBS, SMIC is hailed as the hope of the Chinese semiconductor industry as it can compete well with TSMC and Samsung. But the company’s technology is seriously lagging behind world leaders. This was particularly due to widespread restrictions in Washington that limited SMIC’s access to the main tools for the fabrication of advanced semiconductors.
May 12, Oppo, one of the largest Chinese smartphone manufacturers announced Upon the dissolution of MariSilicon’s ZEKU division responsible for the development of its own chips. The company attributed its decision to uncertainties in the global economy and the smartphone industry.