China's biggest chipmaker Semiconductor Manufacturing International (0981) reported a 50.4 percent decrease in net profit last year to US$902.5 million (HK$7.04 billion) from a year ago, due to the weak global market demand and intense industry competition.
Revenue in the fourth quarter of last year was US$1.7 billion, up 3.6 percent quarter-on-quarter. For the full year, revenue declined 13 percent to US$6.32 billion from a year earlier.
The gross profit margin for the last quarter was 16.4 percent, with a guidance of this quarter in the range of 9 to 11 percent.
This came as the Financial Times reported yesterday that SMIC has put together new semiconductor production lines in Shanghai to mass produce chips designed by Huawei.
Hua Hong Semiconductor (1347) reported a 78 percent decline in net profit to US$35.4 million in the fourth quarter last year, bringing the yearly drop to 38 percent for 2023.
Gross margin was 4 percent in the last quarter compared to 38.2 percent in the same period of 2022, primarily due to decreased average selling price and capacity utilization.
The company's revenue showed an annual decrease of 27.7 percent to US$ 455.4 million in the last three months of 2023.
Expected revenue in the first quarter of this year will be US$450 to 500 million.
