China’s leading chip companies, from Loongson Technology to Cambricon Technologies, expect to log huge losses for 2023 in spite of Beijing’s push for greater self-sufficiency in semiconductors, according to corporate filings, reports the South China Morning Post. Loongson Technology, a fabless chip firm that is a firm advocate for domestic semiconductor development, is estimating a full-year loss of RMB 310 million ($43.36 million) against a RMB 51.8 million profit in 2022. It also expects 2023 revenue to come in at about RMB 508 million, down 31% year-on-year, according to an earnings release on Tuesday.
Meanwhile, Beijing-based Cambricon Technologies, which produces artificial intelligence (AI) accelerators, is projecting a full-year loss of up to RMB 924 million, which would be 40% narrower than its loss in 2022 due to cost-cutting efforts.
It is forecasting 2023 revenue to be slightly down from RMB 722 million in 2022, according to an earnings forecast also issued on Tuesday.