SMIC misses revenue, profit forecasts

Semiconductor Manufacturing International Corp.’s quarterly revenue fell for a third straight quarter, reflecting the impact of a global smartphone slump and a broadening US campaign to curb China’s technology sector, reports Caixin.

The Shanghai company, known as SMIC, reported a 15% decline in revenue to $1.62 billion, missing an average projection by analysts of $1.64 billion. Net income fell 80% to $94 million, compared with estimates for $178.1 million. The numbers missed expectations despite hopes that the surprise popularity of a new range of Huawei Technologies Co. 5G smartphones would help offset lost sales.

SMIC is one of the highest-profile companies at the heart of Beijing’s ambitions to build a world-class tech sector less reliant on American innovations. China’s largest chipmaker helped Huawei build the 7-nanometer processor for the Mate 60 Pro smartphone, regarded as a major achievement for two companies that the U.S. blacklisted years ago citing national security concerns. Riding a wave of nationalist fervor, the device sold out rapidly, taking business away from Apple Inc.’s iPhone.