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More Chip Manufacturers Forecast Gloom

Semiconductor Manufacturing International Co. and Pegatron have joined the growing list of companies with production hubs in Shanghai making dire predictions about the current quarter’s fortunes.

SMIC has warned the month-long lockdown in Shanghai will wipe 5 per cent of its total output during the second quarter.

“We are trying our best to mitigate the impact on product delivery,” SMIC Chairman Gao Yonggang told analysts on a call Friday morning. “We are still assessing the actual impact as many suppliers restart their operation.”

Pegatron had initially forecast its notebook shipments would rise between 25 and 30 per cent during the current quarter, but now expects a fall of up to 10 per cent.

Quanta Computer, the largest manufacturer of MacBooks and a key iPhone producer, reported last week that April revenue fell 40 per cent from the previous month, due to the strict lockdown measures. Its Shanghai site is the largest production centre for MacBooks in the world.

Quanta’s year-on-year revenue was also down 21.3 per cent, to A$3.2 billion. Quanta expects a 20 per cent quarterly fall in notebook shipments and a hit on current quarter margins.

Half of Apple’s 200 top suppliers have facilities in and around Shanghai, according to a Nikkei Asia analysis.


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