UBS reported that Semiconductor Manufacturing International Corporation's results in the first quarter of this year were in line with expectations, raising its 2022 earnings per share forecast by 2 per cent, but cutting its basic earnings per share forecast for 2023 by 20 per cent, mainly because of increased demand uncertainty and weaker pricing support if foundry capacity slows after 2023. The bank lowered SMIC's target price from HK $15 to HK $14, maintaining its rating of "sell".

UBS said that while closed-loop management enabled Semiconductor Manufacturing International Corporation to maintain production activities, it thought it might be inefficient and the company needed to observe how closed-loop management affected logistics, assembly, packaging and even terminal demand.