China's Top Chipmaker SMIC Sees Profit Margin Plummet To 15-Year Low Amid US Export Controls
Portfolio Pulse from Benzinga Neuro
China's Semiconductor Manufacturing International Corp (SMIC) reported a significant drop in profit margin to a 15-year low, despite a 19.7% revenue increase in Q1 2024. The decline to 13.7% is attributed to U.S. export controls and expansion costs. SMIC anticipates further margin declines as it focuses on meeting demand from clients like Huawei. U.S. firms Intel, Broadcom, and Qualcomm continue to see significant revenue from China despite geopolitical tensions.
May 10, 2024 | 2:58 am
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Broadcom, like Intel, benefits from significant revenue streams from China, highlighting the importance of the Chinese market to its business.
Broadcom's performance in China indicates a continued demand for its products, balancing out potential risks from US-China tensions. The neutral short-term impact reflects the current stability but acknowledges future uncertainties.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
Intel, facing geopolitical tensions, continues to see significant revenue from China, indicating resilience in its business model despite external pressures.
Intel's continued revenue from China suggests a stable demand for its products despite geopolitical tensions. However, ongoing US-China relations could pose future risks or opportunities, making the short-term impact neutral.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
Qualcomm's significant revenue from China demonstrates its strong position in the market, despite the backdrop of US-China technological tensions.
Qualcomm's sustained revenue from China suggests resilience and adaptability in a challenging geopolitical landscape. The neutral impact reflects current market stability, with a cautious eye on future developments.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60