China’s top chipmaker Semiconductor Manufacturing International Corporation (SMIC) reported its worst quarterly revenue decline in more than a decade amid the slow recovery in global chip demand.

SMIC report revenue of RMB10.2 billion for the first quarter, down 13.9% from the same period one year ago.

The Shanghai and Hong Kong-listed foundry announced quarterly profits on Thursday that dropped 44% year over year to RMB1.59 billion.

SMIC issued a warning in December, predicting that lower consumer electronics demand will negatively affect its business outlook through the first half of 2023.

However, SMIC said that it would keep up capital expenditures in accordance with its expansion goal.

The company anticipates starting mass production at its 28-nm new Beijing facility, known as SMIC Jingcheng, in the second half of the year, while work is still being done at its Shanghai facility, Xiqing. Meanwhile, mass production has started at the company's 28-nm mature node fab in the southern tech city of Shenzhen.

Taiwan Semiconductor Manufacturing Co., has revised its revenue outlook for this year from modest increase to a low-to-mid single-digit drop. A loss of 4 US cents per share is still anticipated for the second quarter, according to US semiconductor giant Intel Corp, which last month announced its worst quarterly loss in company history.