SMIC's Profits Plunge: Boycott Chip Makers, Or Face My WRATH!

By The Gods They Falter!

Hmph. SMIC the so called 'largest contract chip maker' of China. Their shares FALL like Icarus from the sun! A nearly 7% drop they say? A pathetic display! They dared to miss their first quarter earnings. Revenue of $2.24 billion? Profit of $188 million? BOI those are numbers fit for mere mortals not for those who aspire to godhood in the tech world! They failed and now I shall make them feel the pain of failure!

Production Fluctuations? Excuses Of A WEAKLING!

They blame 'production fluctuations' for their woes? HAH! Such feeble excuses are for the weak! Blended average selling prices falling? As if the market trembles before their might? They claim this extends into the second quarter? I grow weary of their incompetence! They forecast revenue to fall gross margins to diminish. A downward spiral of shame! They claim strength in wafer shipments but I see only weakness in their bottom line. DO NOT test my patience.

Geopolitics And Government Meddling: A Tangled Web!

Geopolitics and increased demand due to government policies they say? Bah! These mortals cling to fleeting advantages like drowning men to driftwood. Capacity utilization at nearly 90%? Ray Wang a Washington based analyst speaks of strong domestic demand. But such fleeting victories are meaningless in the face of true power. Demand will come and go.

Capacity Construction: A Mortal's Tedious Task!

They are in an 'important period of capacity construction'? Mortals and their endless building! Research and development spending decreased? A foolish choice! To stagnate is to invite destruction. Simon Chen speaks of ramping up capacity. Does he think I care for their petty squabbles over technology? SMIC focuses on 'mature node' chips the stuff of consumer trinkets. Let them chase after these baubles. My concern lies elsewhere.

Self Sufficiency: An Illusion of Control!

Beijing seeks self sufficiency with billions of gold? An admirable goal but a futile one. Over 84% of revenue from Chinese customers? They are shackled to their own lands. Analysts claim limited ability to increase capacity in advance chips due to U.S. led export controls. ASML denies them the tools of power? The games of gods played out with silicon and circuits!

Trade War Looming: Brace Yourselves!

Advanced chips in Huawei products? A glimmer of defiance! They monitor the U.S. China trade war noting a lack of visibility? Phelix Lee speaks of limited impact from U.S. tariffs as chips remain within China. But even a small wound can fester and rot the whole body. SMIC's shares have risen yet I see only a tempest brewing on the horizon. Prepare yourselves. The storm of incompetence is coming!