China's biggest chipmaker, Semiconductor Manufacturing International's (0981) net profit plunged 68.9 percent to US$71.8 million (HK$561.17 million) in the first three months of 2024 from a year ago .
Its revenue rose 19.7 percent to US$1.8 billion, but the gross margin was down from 20.8 percent in the same period of last year to 13.7 percent in the first quarter, with a guidance of this quarter in the range of 9 to 11 percent.
The capacity utilization rose 12.7 percentage points to 80.8 percent, and Wafer shipments advanced 43.4 percent year-on-year.
SMIC predicted revenue will increase by 5 to 7 percent quarterly, and that "demand for pull-in from some customers is continuing."
Meanwhile, another chipmaker, Hua Hong (1347), said its net profit slumped 79.1 percent to US$31.8 million in the first quarter.
Its revenue was down 27.1 percent to US$460 million due to the decreased average selling price.
"The overall semiconductor market has not yet emerged from the downturn," said Tang Junjun, president of the company.
Shares of SMIC and Hua Hong rose 4.71 percent and 8.81 percent respectively, ahead the results announcements yesterday.
Staff reporter
