Semiconductor Manufacturing International Corp (SMIC), China’s largest chipmaker, reported a 27% increase in revenue for 2024, reaching a record US$8 billion.

However, net profit fell 45.4% year-on-year to US$493 million due to challenges in the legacy chip market and US export restrictions.

Following the announcement, SMIC’s shares dropped 3.4% on Friday morning.

Hua Hong Semiconductor, China’s second-largest wafer manufacturer, also struggled financially.

Its revenue fell 12.3% to US$2 billion, while net profit plummeted 79.2% to US$58 million. This led to a 3.3% decline in its share price during trading session on Mar. 28.

Both companies face intense competition in China’s semiconductor market and restrictions on high-end chip production.

In contrast, Taiwan Semiconductor Manufacturing Co (TSMC), the global industry leader, posted a 40% increase in net profit, reaching US$35 billion, far surpassing SMIC in both revenue and profitability.

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