The demand for smartphones and PCs or laptops has dropped ‘like a rock’ and the present international state of affairs and Covid-19 lockdowns can wipe off 200 million models of handsets in 2022, a prime Chinese chip-maker has warned.
According to Semiconductor Manufacturing International Corporation (SMIC), China, lockdowns will end in 200 million much less smartphone models this 12 months, experiences South China Morning Post.
The SMIC predicted a depressing outlook for client electronics demand, saying it sees no signal of a restoration anytime quickly.
The Shanghai lockdown might scale back manufacturing by 5 per cent this quarter.
“We are trying to make up for the production losses before the end of June using our factories outside Shanghai, but the losses may not be compensated,” SMIC Co-CEO, Zhao Haijun mentioned throughout an earnings name late on Friday.
“Chinese smartphone vendors could reduce shipments by 200 million units this year. Many orders (from smartphone makers) were canceled,” he added.
“We expect a five per cent production loss during the second quarter,” mentioned the corporate.
SMIC is still dealing with delays in equipment shipments for some of its foundries currently under construction.
The US sanctions remain another challenge for the Chinese chip giant.
The Chinese mainland has reported 222 confirmed local Covid-19 cases, of which 144 were in Shanghai.
Shanghai also reported 1,305 locally transmitted asymptomatic infections on Wednesday, of a total of 1,630 such Covid cases newly identified on the mainland, reports Xinhua news agency.