Semiconductor Manufacturing International (HKG:0981, SHA:688981) said there is a risk of oversupply of mature-node chips in the second half of 2025, Reuters reported, citing remarks made during an earnings call.

An oversupply of chips could mean hopes of recovery from a post-pandemic slump could be watered down, the report said.

"We face two major concerns for the second half of 2025. First, we expect order volume to decline as demand has been pulled forward to the first half," Reuters quoted co-chief executive officer Zhao Haijun as saying during the call.

Added production capacity across the semiconductor industry is also seen to start a price war as manufacturers compete for more orders, the report said, citing Zhao.

SMIC manufactures legacy chips for consumer electronic items that enjoyed strong demand during the COVID-19 quarantines. The demand went down as more people returned to the office, Reuters said.

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