China's top chip maker reports Q2 plunge in profits

BEIJING — Leading Chinese chip maker SMIC announced Thursday a sharp year-on-year drop in profits during the second quarter.

The United States has in recent years taken steps to cut off Chinese firms from accessing its technology and has tightened restrictions on semiconductor exports to the world's second-largest economy.

Semiconductor Manufacturing International Corporation (SMIC), which is listed in Hong Kong and its home city Shanghai, has been a primary target of these measures.

SMIC said on Thursday in a statement to the Hong Kong Stock Exchange that its second-quarter profit attributable to owners stood at $164.6 million, dropping 59.1 per cent compared to the same period in 2023.

Revenue surged to $1.90 billion, up 21.8 per cent year-on-year and improving from the $1.75 billion recorded in the first quarter.

The firm said it expected revenue growth to continue in the third quarter, increasing by 13 to 15 per cent from the second quarter.