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Semiconductors

China chipmaker SMIC sticks to expansion plans amid downturn

Industry facing 'severe' situation due to politics and weak demand, co-CEO says

SMIC's lackluster October-December performance included revenue falling 15%, gross margin dropping to 32% and net income declining 18.1% on the quarter.

TAIPEI -- Geopolitical tensions and weak demand have left the global chip industry facing an "unprecedentedly severe" situation, China's chipmaking giant Semiconductor Manufacturing International Corp. said on Friday.

The company said it will nevertheless maintain its capital spending plans, despite increasingly strict U.S. export controls on China's chip sector.

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