Semiconductor Manufacturing Worldwide Corp on Thursday lifted its annual capital expenditure forecast to round USD 7.5 billion and stated it expects decrease fourth-quarter gross margins.
The Chinese language chip foundry additionally reported an over 80% fall in its third-quarter revenue attributable to USD 470.8 million, becoming a member of friends akin to Taiwan’s TSMC and Germany’s Siltronic in dealing with earnings stress from a slowdown within the semiconductor business.
Excessive rate of interest and protracted inflation have compelled companies to tighten their tech budgets, whereas U.S. restrictions on Chinese language chip firms are additionally weighing on the sector.
SMIC expects a gross margin of between 16% and 18% within the fourth quarter, in contrast with 19.8% within the third quarter.
Income for the third quarter fell to USD 1.62 billion from USD 1.91 billion a yr in the past, however the firm expects a sequential improve of 1% to three% within the fourth quarter.
SMIC had beforehand stated it expects capital expenditure in 2023 to be roughly flat in contrast with 2022, which got here in at about USD 6.35 billion.