
China’s Semiconductor Giant SMIC Sees Shares Plummet Amid Profit Woes
In a shocking move, Semiconductor Manufacturing International Corporation (SMIC), China’s leading chipmaker, witnessed its shares plummet by 4.34% to ¥86.66 as the company’s profit took a hit, resulting in an unexpected decline of 19.5%. This drastic change in stock performance comes despite the company boasting a robust 16.2% year-on-year revenue increase, reaching a staggering US$2.2 billion.
SMIC attributes its impressive Q2 growth to strong domestic sales, which have accounted for over 84% of their sales, effectively shielding them from potential US tariffs. In contrast, sales to the Americas fell significantly by 12.9%. It is imperative that investors keep a watchful eye on this stock’s performance as it navigates these uncertain times.
Despite these challenges, SMIC remains optimistic about its prospects, citing the ongoing demand for their high-quality chips in China and potential for growth. In addition, the company predicts an impressive 5% to 7% increase in revenue for Q3.
Source: coincentral.com