Sony's Chips Division and SMIC Face Slumps in Profit Due to Weaker Sales of Image Sensors

Sony's chips division saw a 37% slump in profit due to higher expenses and weaker sales of image sensors used in smartphones. Semiconductor Manufacturing International Corp. (SMIC) also faced a third straight quarterly revenue fall, reflecting the impact of a global smartphone slump and U.S. campaign. SMIC's profit slumped by 80%, but it plans to increase chip production despite warnings of excess capacity. The company has raised its capital expenditure budget to $7.5 billion amid escalating U.S.-China tensions. SMIC's co-chief executive highlighted the excess production capacity globally, indicating a slow digestion of hastily built production. Despite the slump, SMIC aims to build up more production, targeting the Chinese market.