China chipmaker SMIC losses widen

China's largest chip foundry, Semiconductor Manufacturing International Corp, made a large fourth-quarter loss, but said its gross profit margin will improve this year and its depreciation costs will begin to decline in 2007, reported the Wall Street Journal. However, the latest loss was narrower than the third-quarter loss of US$26.1 million. SMIC began posting quarterly losses in the fourth quarter of 2004 because of industry-wide oversupply and rising depreciation costs folowing a rush to establish new facilities.