China’s Top Chipmaker SMIC Warns Production Issues Hit Sales
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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 June quarter versus the first three months, compared with projections for about an 8% rise. The warning came after the company discovered unspecified issues with production lines. SMIC though is sticking with plans to spend $7.5 billion this year to boost and upgrade output, in line with previous outlays.