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’s stock fell 4.6% Friday in Hong Kong, the biggest fall in more than a month.
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 US$7.5 billion ($9.75 billion) this year to boost and upgrade output, in line with previous outlays.
