The shares of the SMIC Chinese chip maker decreased by 7 % after missing the profits

shares The International Corporation for the Manufacture of SemiconductorsThe largest chip maker in China, about 7 % fell on Friday after First quarter profits Defeat estimates.

After trading on Thursday, the company reported revenues in the first quarter of $ 2.24 billion, an increase of about 28 % over the previous year. Meanwhile, the profit attributed to shareholders increased by 162 % year on year to $ 188 million.

However, both numbers were absent from the 2.34 billion dollar estimates of revenue and $ 225.1 million in net income, as well as The company’s private expectations.

During a profit call on Friday, SMIC representative said that the profits were lost in the original guidance “Production fluctuations” that led to a decrease in the average mixed selling prices. They added that this effect extends to the second quarter.

For the current quarter, the chip maker expected that the revenues will decrease by 4 % to 6 % in a continuous manner. The total margin is also expected to decrease in the range of 18 % to 20 %, compared to 22.5 % in the first quarter.

However, the first quarter witnessed SMIC shipments by 15 % of the previous quarter and about 28 % on an annual basis.

In the profit call, SMIC attributed that growth to the shipping of customers brings changes in political geography and increases the demand that government policies such as local trade programs and consumption support.

On another positive mark of the company, the use of its capacity in the first quarter-the percentage of the total available manufacturing capacity that is used at any specific time-by 89.6 %, reached 4.1 % in the quarter.

“SMIC USPATER is using approximately 90 %, the strong domestic demand reflects semiconductor, which is likely to be driven by the production of smartphones and consumer electronics,” said Ray Wang, a Washington -based technology analyst and technology analyst based, adding that “SMIC USPATER uses approximately 90 % reflects the strong domestic demand for semiconductors, which is likely to be driven by the production of smartphones and consumer electronics,” adding that the demand also reflects in the growth of the strong quarterly quarterly revenues.

Meanwhile, the company said in calling profits that it is “currently in an important period of building capacity, offering it, and increasing its share in the market continuously.”

However, research and development spending in the first quarter of SMIC decreased to $ 148.9 million, a decrease of $ 217 million in the previous quarter.

Amid the increasing demand, it will be important for SMIC to continue to increase its ability.

SMIC generates most of its revenues from semiconductors of the oldest generation, and is often referred to as “mature node” or “legacy”, which is usually found in consumer electronics and industrial equipment.

The state -backed chips maker is crucial to Beijing’s aspirations to build a chain of supplies with self -sufficiency, with the government. Pump billions in such efforts. More than 84 % of its revenues were derived in the first quarter of customers in China.

“The transformation of the supply chain’s resettlement has been strengthened, and more demand for manufacturing has turned locally,” said a representative on Friday.

However, the chips analyst says The ability of the chips maker To increase pre -capacity for pre -chips – used in applications that require higher levels of computing and efficiency in higher returns – limited.

This is due to the US -led export control items, which prevent it from reaching some of the world’s most advanced chips from ASML in the Netherlands.

However, the chip maker appears to achieve some breakthroughs. According to SMIC’s advanced chips in many Huawei products, especially in Mate 60 Pro Smartphone And some Artificial intelligence treatments.

Hong Kong -listed SMIC shares have gained more than 32.23 % on an annual basis.