China’s SMIC Warns of ‘Rapid Freeze’ as Smartphone Demand Skids
Semiconductor Manufacturing International Corp. warned that clients in sectors such as smartphones were freezing orders, underscoring how a downturn in consumer electronics demand is hurting the chip sector.
Waning demand from makers of smartphones and TV components is forcing SMIC to readjust its manufacturing plans, co-CEO Zhao Haijun told analysts on Friday. The economic downturn and inventory adjustments have spurred “rapid freeze and urgent order halts” as some clients hold off on placing new orders, he said on a conference call. SMIC fell as much as 3.1% in Hong Kong.