Shares of Semiconductor Manufacturing International Corporation (SMIC), China's top foundry, plummeted 5.28% in pre-market trading on Friday following cautionary comments from the company's co-CEO about future order trends. The stark drop comes amid a mixed outlook for the chip manufacturer, despite some positive notes on current production capacity.

During an earnings call, SMIC co-CEO Zhao Haijun revealed that "the situation of rush orders and pulled-in shipments in the fourth quarter will slow down." This statement appears to have spooked investors, leading to the significant sell-off. However, Zhao also noted that production capacity remains insufficient and will stay tight until October, suggesting that current demand remains strong.

In a surprising twist, Zhao mentioned that the "hard landing" they initially feared due to U.S. President Donald Trump's tariff policy "has not happened so far." Despite this relatively positive note, it wasn't enough to offset concerns about the projected slowdown in the crucial fourth quarter. The market's reaction underscores the semiconductor industry's sensitivity to future demand forecasts, especially in the face of ongoing global trade tensions and economic uncertainties.