SMIC Faces Intense Price Competition Amid Global Chip Surplus

China's leading chipmaker, SMIC, reports a significant profit drop as it navigates a saturated market and escalating U.S.-China tech tensions.

SMIC's profit margins hit a 15-year low, with a 68.9% decline in net profits despite a 19.7% revenue increase.
The company warns of further price reductions due to increased production capacities and aggressive pricing by domestic competitors.
U.S. export controls and international concerns over market flooding exacerbate SMIC's challenges.
SMIC's focus shifts towards meeting domestic demand, with significant investments planned in capacity expansion.
Analysts predict a tough road ahead with potential underutilization of new capacities amid global supply adjustments.