The United States administration, as per several media reports, had restricted US companies from exporting semiconductor tech without obtaining a license to SMIC among others
Semiconductor Manufacturing International Corporation (SMIC) one of the China-headquartered semiconductor foundries in the world, has announced its consolidated results of operations for the three months ended 30 September 2020. The company noted that its revenue was a record high of $1,082.5 million in 3Q20.
“In the third quarter, the Company’s revenue continued to reach a record high of US$1,083 million, up 15.3 per cent quarter-over-quarter and 32.6 per cent year-over-year. The Company achieved historical highs for gross profit of $262 million, profit for the period attributable to SMIC of $256 million, and EBITDA of $653 million. The expected annual revenue growth is revised to increase 24 per cent to 26 pr cent, and the annual gross margin is targeted to be higher than last year,” Dr Gao Yonggang, SMIC’s Chief Financial Officer commented.
Gross profit at $262 million
SMIC’s gross profit was $262 million in 3Q20. This represents an increase of 5.4 per cent QoQ from $248.6 million in 2Q20 and 54.3 per cent YoY from $169.8 million in 3Q19. It’s gross margin was 24.2 per cent in 3Q20, compared to 26.5 per cnet in 2Q20 and 20.8 per cent in 3Q19.
Dr Zhao Haijun and Dr Liang Mong Song, SMIC’s Co-Chief Executive Officers noted, “Demand for non-FinFET technology application platforms continues to be strong, with significant growth from applications such as power management, RF signal processor, fingerprint sensor, and image signal processor. Our FinFET technology addresses a diverse range of applications, and the yield of our first-generation FinFET technology has achieved industry standards, while our second-generation FinFET technology is entering small-volume risk production. The Company’s capacity is expanding steadily; at the same time, our utilization rate maintains at a high level.”
The United States administration, as per several media reports, had restricted US companies from exporting semiconductor tech without obtaining a license to SMIC among others.
“We continue to actively communicate with suppliers, customers and relevant agencies, and evaluate the overall impact of US export restrictions on our production and operation. Currently, the Company is operating as usual, and though the export restrictions will have an impact on us, in the near-term we believe it is manageable. We will continue to follow up on this matter and further evaluate the impact. We thank our customers for their trust, suppliers for their support, and all our fellow employees for their diligent joint efforts,” read SMIC’s official statement.