SMICs continuous decline in consecutive quarters of consecutive quarters say tha

SMIC's international revenue has declined for three consecutive quarters.According to the company, the recovery of the original smartphone market will wait another year. In addition, the situation of geopolitical tensions will also cause severe overcapacity global chip production capacity.

Although Huawei new 5G mobile phones equipped with SMIC chips are welcomed, SMIC's sales performance is still not satisfactory.According to Bloomberg, SMIC's release of the third quarter performance data on Thursday (November 9) showed that in the third quarter, revenue fell 15%to 1.62 billion US dollars (about S $ 2.2 billion), which was lower than the average expected $ 1.64 billion.Net profit fell by 80%to 94 million US dollars, lower than the expected $ 178.1 billion.

At a conference on Friday, SMIC did not mention Huawei. The company executives mentioned that the political tension situation has increased chip production capacity in some countries around the world.They did not mention specific countries, the United States, Japan, and Europe have introduced preferential measures to support the development of the local chip industry.

Analysts believe that such support can cause overcapacity in chip globally."From a global perspective, production capacity will be excessive, and new production capacity of digesting in recent years will take a long time," Zhao Haijun, CEO of SMIC, told analysts at the conference call.

According to the First Financial, SMIC also said that the demand for China's semiconductor is very large.Xin International has a high confidence in construction capacity, and there will be customers' needs and orders in the future.

SMIC's stock price fell 6.6%on Friday, the largest decline in two months.However, since Huawei released the Mate 60 Pro smartphone at the end of August, SMIC's stock price has risen by about 40%.

Huawei's profit growth in the third quarter was doubled, and it reappeared after the US sanctions.SMIC is expected to grow in the fourth quarter, but it depends on whether the United States considers further sanctions.U.S. Councilor called for Huawei's technical breakthroughs and called for strengthening restrictions on management and control.