China's Top Chipmaker SMIC Plunges After Projecting Lower Sales
Semiconductor Manufacturing International Corp. plunged Friday after China's leading chipmaker warned sales could fall as much as 6% this quarter because of production disruptions.
Co-CEO Zhao Haijun said sales would fall between 4% and 6% in the second quarter, versus projections for a sharp rise. The warning came after the company discovered unspecified issues with production lines. The company though is sticking with plans to spend $7.5 billion this year to boost and upgrade output, in line with previous outlays. SMIC's stock plunged 11% Friday in Hong Kong, the biggest fall in more than a month.
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