SMIC Announces 80 Percent Drop In Profit For Third Quarter Despite Kirin 9000S Demand Surge Caused By Huawei Mate 60 Popularity Boost

wccftech.com:

An increased number of Kirin 9000S orders did not aid the finances of SMIC as China’s largest semiconductor manufacturer posted a massive 80 percent dip in profits for the third quarter of this year. This drop is the company’s biggest in quarterly income since 2019, which was 64 percent. Overall, total revenue surpassed $1.621 billion, with a $93.98 million profit. Looking at these statistics, SMIC has a ton of catching up to do before it can match the earnings capabilities of Samsung, though the U.S. export controls continue to make things difficult for the chip maker.

Apart from the Kirin 9000S found in Huawei’s Mate 60 lineup, SMIC also mass produces chips for a variety of other applications, including automotive. Unfortunately, chip inventories are at a higher level after a short supply for three years. Due to low demand for these parts, several customers have begun to tighten orders, which has harmed SMIC’s financials, according to CNBC.

“In the China market, the high product inventory problem that started in the third quarter of last year has been mitigated and the inventory has decreased to a relatively healthy level. But American and European customers’ inventories – they will remain at historically high levels.”

Even Huawei’s plans are currently unknown, as at this time, the Kirin 9000S utilizes the 7nm process. To become more competitive with its rivals, the former Chinese smartphone giant will eventually have to move over to more advanced manufacturing processes for its future Kirin SoCs, with the 5nm being the obvious choice.

While this transition might boost SMIC’s financial prospects, until the manufacturer has a larger customer base, its revenue will not improve substantially. Then again, Huawei has been