SMIC: SMIC faces profit decline amid rising competition and low returns from high-end chip manufacturing

Despite a surge in sales, SMIC is still facing a decline in profit due to increasing competition from other Chinese foundries. Additionally, the company remains committed to supporting high-end chip manufacturing, even though it is likely to yield low returns. The fourth quarter, typically an off-season period, has further contributed to lower utilization rates and a decrease in wafer production.