SMIC, China's largest contract chipmaker, reported a significant decline in its fourth-quarter profit, marking a challenging period for the semiconductor manufacturing giant. The company, which specializes in mature-node chips used in consumer electronics and home appliances, announced a 38.4% decrease in year-on-year profit for the October-December quarter. The profit attributable to owners of SMIC reached $107.6 million, falling short of analysts' expectations, which had estimated a profit of $193.45 million, according to LSEG data.
The fourth-quarter profit report was released by Reuters on February 11, 2025, at 21:22 JST, with an update following at 23:54 JST. The release, originating from Beijing, highlighted the challenges faced by SMIC in the competitive semiconductor industry. As a leading Chinese chipmaker, SMIC's role as a contract manufacturer means it produces chips for other companies, predominantly focusing on mature-node technology.
The reported profit figures indicate a concerning trend for SMIC, as the company navigates the complexities of the global semiconductor market. Despite its position as a leading player in the industry, the profit decline reflects broader economic challenges and potential shifts in consumer demand for electronics and home appliances.
The shortfall in expected profit underscores the volatility and unpredictability of the semiconductor sector, a critical industry underpinning much of today's technological infrastructure. Analysts had predicted a more robust financial performance from SMIC, but the actual results revealed a steeper decline than anticipated.
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