China's largest chipmaker warns of rapid freeze as smartphone demand skids

China's largest chipmaker reported revenue rose 42% to $1.9 billion in the second quarter, generally in line with expectations

Semiconductor Manufacturing International Corp. warned that clients in sectors such as smartphones were freezing orders, underscoring how a downturn in consumer electronics demand is hurting the chip sector.
 

Waning demand from makers of smartphones and TV components is forcing SMIC to readjust its manufacturing plans, co-CEO Zhao Haijun told analysts on Friday. The economic downturn and inventory adjustments have spurred “rapid freeze and urgent order halts” as some clients hold off on placing new orders, he said on a conference call. SMIC fell as much as 3.1% in Hong Kong. 

Investors fear the notoriously cyclical chip industry is hurtling toward