Latest news with #ZhaoHaijun
South China Morning Post
09-05-2025
- Business
- South China Morning Post
China's top chipmakers see shares plunge amid tariff uncertainty, despite revenue growth
China's largest chip foundries, Semiconductor Manufacturing International Corporation (SMIC) and Hua Hong Semiconductor, saw their stock prices plunge after warning of potential challenges in the second half of the year amid US-China tensions. Advertisement SMIC, the country's biggest chipmaker, expected a 4 to 6 per cent sequential drop in second-quarter revenue, citing 'fab production fluctuation' as a cause that led to a decrease in average selling prices, co-CEO Zhao Haijun said in an earnings call on Friday. The company noted in its earnings report on Thursday that the second half of the year would present 'both opportunities and challenges', as it worked to bolster its 'adaptability and risk resilience'. Hua Hong, SMIC's smaller rival, echoed concerns about the business environment in the months ahead. 'The entire semiconductor industry will face greater uncertainties in terms of customer demand, procurement costs, and the supply chain landscape due to recent changes in the global environment and related policies,' the company said in its Thursday earnings report. Still, Hua Hong expected a sequential rise in second-quarter revenue to between US$550 million and US$570 million. Advertisement SMIC and Hua Hong's Hong Kong-listed shares declined on Friday by 4.8 per cent and 7.9 per cent, respectively.
Yahoo
09-05-2025
- Business
- Yahoo
China's Top Chipmaker SMIC Plunges After Projecting Lower Sales
(Bloomberg) -- 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. Is Trump's Plan to Reopen the Notorious Alcatraz Prison Realistic? As Trump Reshapes Housing Policy, Renters Face Rollback of Rights Vail to Borrow Muni Debt to Ease Ski Resort Town Housing Crunch NYC Warns of 17% Drop in Foreign Tourists Due to Trump Policies LA Mayor Credits Trump on Fire Aid, Stays Wary on Immigration 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. 'The incident had affected the process accuracy and yield of our products,' Zhao said. 'Certain upgrade efforts during equipment verification had also affected yield.' Zhao also warned of risks in the consumer market, saying a shipment correction in the smartphone market was likely to happen in July or August due to an overly ambitious target. SMIC reported $188 million in net income for the first quarter, missing an average analyst estimate of $218.1 million, despite posting 28% growth in sales. The company's weak second quarter sales guidance demonstrates the toll of pricing pressure and softer-than-expected consumer chip demand in China, both aggravated by US tariffs, analysts Charles Shum and Steven Tseng wrote in a note. 'SMIC's 1Q sales undershot consensus by 4.7%, with an earnings miss of 16%, despite the front-loading of orders prior to US tariffs being implemented,' they said. Zhao dismissed the potential for damage from US tariffs. 'We expect positive results from trade talks. If that happens, we believe the impact to semiconductor contract making business can be absorbed,' he said. Hua Hong Semiconductor Ltd., another major Chinese chipmaker, also said any tariffs wouldn't have a meaningful impact on its business. The impact would be limited because the company mostly sells its products in China, President Peng Bai said in an earnings call Thursday. 'As long as the tariff situation doesn't disrupt too much of the market dynamics or the market logic too much, we still expect that 2025 will play out as we originally expected,' he said. Shares of the firm fell as much as 13% after first-quarter net income missed estimates by a wide margin. US Border Towns Are Being Ravaged by Canada's Furious Boycott Maybe AI Slop Is Killing the Internet, After All Pre-Tariff Car Buying Frenzy Leaves Americans With a Big Debt Problem What the US Would Lose If Trump Pushes Out Legal Immigrants Made-in-USA Wheelbarrows Promoted by Trump Are Now Made in China ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
09-05-2025
- Business
- Business Times
China's top chipmaker SMIC plunges after projecting lower sales
[SINGAPORE] Semiconductor Manufacturing International Corporation (SMIC) plunged on Friday (May 9) after China's leading chipmaker warned sales could fall as much as 6 per cent this quarter because of production disruptions. Co-CEO Zhao Haijun said sales would fall between 4 per cent and 6 per cent 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 US$7.5 billion this year to boost and upgrade output, in line with previous outlays. SMIC's stock plunged 11 per cent on Friday in Hong Kong, the biggest fall in more than a month. 'The incident had affected the process accuracy and yield of our products,' Zhao said. 'Certain upgrade efforts during equipment verification had also affected yield.' Zhao also warned of risks in the consumer market, saying a shipment correction in the smartphone market was likely to happen in July or August due to an overly ambitious target. SMIC reported US$188 million in net income for the first quarter, missing an average analyst estimate of US$218.1 million, despite posting 28 per cent growth in sales. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The company's weak second-quarter sales guidance demonstrates the toll of pricing pressure and softer-than-expected consumer chip demand in China, both aggravated by US tariffs, analysts Charles Shum and Steven Tseng wrote in a note. 'SMIC's 1Q sales undershot consensus by 4.7 per cent, with an earnings miss of 16 per cent, despite the front-loading of orders prior to US tariffs being implemented,' they said. Zhao dismissed the potential for damage from US tariffs. 'We expect positive results from trade talks. If that happens, we believe the impact to semiconductor contract making business can be absorbed,' he said. Hua Hong Semiconductor, another major Chinese chipmaker, also said any tariffs would not have a meaningful impact on its business. The impact would be limited because the company mostly sells its products in China, president Peng Bai said in an earnings call on Thursday. 'As long as the tariff situation does not disrupt too much of the market dynamics or the market logic too much, we still expect that 2025 will play out as we originally expected,' he said. Shares of the firm fell as much as 13 per cent after first-quarter net income missed estimates by a wide margin. BLOOMBERG
Bloomberg
09-05-2025
- Business
- Bloomberg
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.
Yahoo
09-05-2025
- Business
- Yahoo
SMIC to closely monitor impact of tariffs on demand, says co-CEO
By Che Pan and Brenda Goh BEIJING (Reuters) -China's semiconductor foundry, Semiconductor Manufacturing International Corporation (SMIC), will closely monitor the impact of tariffs on demand, co-CEO Zhao Haijun said on Friday, adding that visibility for the second quarter was not clear at the moment. Zhao told analysts in an earnings call that while import tariffs had increased orders from U.S. customers in the past quarter, the overall impact had been modest. In its financial statement, SMIC projected a revenue decline of up to 6% in the second quarter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
