According to Bloomberg, representatives of Semiconductor Manufacturing International Corp., the world's largest chipmaker, have warned of an oversupply in the global chip market. They believe it may take at least a year for the smartphone market to recover. Analysts attribute this trend to rising geopolitical tensions, contributing significantly to the global chip glut. However, two of the company's competitors, Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co., disagree with this gloomy forecast. They question the decline in smartphone demand, arguing that smartphones have become an integral part of many people's identities in our digital age, making it premature to discuss gadget redundancy and chip market saturation. Despite this optimism, there are reasons for pessimism. In the week of November 6-11, the Chinese chipmaker reported its third consecutive quarterly revenue decline. The expansion of Washington's sanctions against China's tech sector has further fueled concerns. Investors' hopes that the popularity of Huawei Technologies Co.'s latest smartphone models would offset the sales slump were dashed, although there remains hope for future improvement. After the Chinese chipmaker's report, SMIC's shares plunged by 6.6%. Additionally, the firm announced a 15% revenue fall in the past quarter, amounting to $1.62 billion, leading to an 80% decrease in SMIC's net profit. SMIC's leadership views the current political tension as a catalyst for global chip production expansion in China. This move was mirrored by the US, Japan, and EU countries, which also significantly increased chip production. Recently, Huawei introduced a 7-nanometer processor for the Mate 60 Pro, a groundbreaking product for both Huawei and SMIC. Notably, both companies are on the US blacklist, deemed a national security threat. Back in late August 2023, Huawei launched the Mate 60 Pro for $900, boosting SMIC's stock value by nearly 40%. Currently, Huawei is experiencing cautious growth, hampered by US sanctions.