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SMIC Shares Fall 11% as Q1 Profit Hits $188 Million, Revenue Misses, Q2 Sales Seen Down 4-6%

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Updated May 9, 2025, 04:28 PM

Semiconductor Manufacturing International Corporation (SMIC), China's largest contract chipmaker, reported a 161.9% year-on-year increase in first-quarter profit to $188 million, with revenue rising 28.4% to $2.2 billion. Both profit and revenue missed analyst estimates of $222.4 million and $2.3 billion, respectively. Gross margin reached 23%. Despite the profit surge, SMIC's shares fell sharply, with its Hong Kong-listed stock dropping as much as 11% at one point to HKD42.10 and closing down nearly 7%. The Shanghai-listed shares fell 4.4%. The company warned of a potential 4% to 6% sequential revenue decline in the second quarter due to production disruptions and forecast a Q2 gross margin of 18% to 20%. SMIC's capacity utilization rate reached nearly 90% in the first quarter, and wafer shipments increased 15% quarter-on-quarter. R&D spending decreased to $148.9 million. Most of SMIC's revenue comes from mature-node chips, with over 84% of first-quarter revenue derived from Chinese customers. Advanced chips manufactured by SMIC have reportedly appeared in Huawei products. SMIC plans to invest more than $7 billion in 2025 to expand capacity and market share, focusing on automotive and industrial chip segments amid China's push for semiconductor self-sufficiency. The company cited ongoing tariff uncertainty and production yield issues as factors clouding its outlook for the second half of the year.

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#Semiconductor Manufacturing International Corporation #SMIC #China #Hong Kong #Chinese #Huawei

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Sources

mktnews.com(6)reuters.com(5)bloomberg.com(2)wsj.com

Paul Triolo

@pstAsiatech

SMIC’s Quarterly Profit Jumps on Robust Chip Demand https://t.co/eBe34GiZ1b via @WSJ

jedimarkus77

@jedimarkus77

Shouldn't Chiiiiiiiiiiiiiiiiiiiiiiiiiiiinah $FXI be breaking out to new month highs by now??? https://t.co/zwaK4rAo1y https://t.co/hGjVyxsHba

Brendan Ahern

@ahern_brendan

Premium/Discount of US listed China #ADRs versus their HK close. CNH/renminbi is up slightly versus the US $. Could be a good sign for risk assets IMO https://t.co/egYrchDMRI

Story Timeline

4 days ago•Latest version

SMIC Shares Fall 11% as Q1 Profit Hits $188 Million, Revenue Misses, Q2 Sales Seen Down 4-6%

5 days ago•Original version

SMIC Reports 161.9% Q1 Profit Surge, Plans $7 Billion Expansion Amid Auto Chip Demand

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SMIC Shares Fall 11% as Q1 Profit Hits $188 Million, Revenue Misses, Q2 Sales Seen Down 4-6%

Associated Financial Markets

Related Prediction Markets

U.S. tariff rate on China on August 15?

US recession in 2025?

Will Trump remove majority of reciprocal tariffs before 90 day deadline?

Sources

Story Timeline

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