China chipmaker SMIC hikes capex to $7.5bn despite profit slump

Spending rise for 2023 comes as Washington tightens export rules

SMIC is ramping up capital expenditure despite a slump in profit as tensions between China and the U.S. continue. © Reuters

CHENG TING-FANG and LAULY Li, Nikkei Asia tech correspondents

November 10, 2023 09:36 JST

Updated on November 10, 2023 12:03 JST

TAIPEI -- China's top chipmaker, Semiconductor Manufacturing International Corp. (SMIC), has raised its capital expenditure budget for 2023 to $7.5 billion amid escalating U.S.-China tensions, despite posting an 80% decline in net profit for the July to September quarter.

The company also predicted a widespread chip supply glut outside the U.S. and China as geopolitical forces push countries to build up their own semiconductor supply chains.