SMIC Will continue to focus on technology research and development to quickly validate new products

SMIC will focus on R&D to validate new products quickly

【Phoneauto News】On August 10th, Semiconductor Manufacturing International Corporation (SMIC) announced on the Hong Kong Stock Exchange that it will continue to focus on technology research and development, platform development, and expedite the validation of new products. SMIC will also optimize the arrangement of supporting production capacity to prepare for the next growth cycle. Currently, SMIC has three 8-inch wafer fabs and four 12-inch wafer fabs in Shanghai, Beijing, Tianjin, and Shenzhen respectively. There is also one 12-inch wafer fab under construction in Shanghai, Beijing, and Tianjin.

The announcement shows that SMIC’s revenue in the second quarter of 2023 was $1.56 billion (approximately RMB 11.2 billion), compared to $1.903 billion in the same period last year. The net profit was $402.8 million (approximately RMB 2.9 billion), compared to $514 million in the same period last year.

Specifically, SMIC’s sales revenue for the second quarter of 2023 was $1.5604 billion, $1.4623 billion for the first quarter of 2023, and $1.9032 billion for the second quarter of 2022. The gross profit was $316.5 million, $304.7 million for the first quarter of 2023, and $750.5 million for the second quarter of 2022. The gross margin was 20.3%, 20.8% for the first quarter of 2023, and 39.4% for the second quarter of 2022.

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SMIC stated that in the second quarter of 2023, the company’s sales revenue increased by 6.7% to $1.56 billion compared to the previous quarter, and the gross margin decreased by 0.5 percentage points to 20.3%. The demand for 12-inch production capacity is relatively strong, while the demand from 8-inch customers is weak, resulting in a lower utilization rate compared to 12-inch, but still better than the industry average. Sales revenue is expected to increase by 3% to 5% quarter-on-quarter in the third quarter, with a gross margin between 18% and 20%. Shipments in the third quarter are expected to continue to rise, while depreciation expenses will also increase. Sales revenue in the second half of the year is expected to perform better than the first half.

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