China’s SMIC Had Reported Record High Revenue For 2Q 2020

- Advertisement -

The China-headquartered semiconductor company, SMIC, might be next on the list of US bans. The company said that it has maintained long-term strategic partnerships with multiple U.S.-based semiconductor equipment suppliers

On the brink of being banned by the US authorities, SMIC for 2Q 2020, had reported record revenue figures of $938.5 million. These announcements were made before the news of US possible banning SMIC were published.

“Although the macro environment remains uncertain, IC demand continues to be strong. Our second quarter revenue reached another record high of $938 million, an increase of four per cent quarter-over-quarter and a 19 per cent year-over-year increase; profit for the period attributable to SMIC also reached another historical high of $138 million,” Dr. Zhao Haijun and Dr. Liang Mong Song, SMIC’s Co-Chief Executive Officers had commented.

- Advertisement -

Supplies to Huawei and Qualcomm among others

SMIC supplies chips to Huawei as well as Qualcomm among other clients. If the proposal of Pentagon is finalised and summoned, SMIC would not be able to upgrade software of any of its US-sourced machines.

SMIC, in a response, released a statement that read, “SMIC solemnly declares that the Company, a public company listed on the Hong Kong Stock Exchange and the Sci-Tech Innovation Board (STAR Market), is an international semiconductor foundry strictly complying with the laws and regulations of all jurisdictions where it performs its businesses. Since its inception, the Company has been fully compliant with all rules and laws. SMIC has maintained long-term strategic partnerships with multiple U.S.-based semiconductor equipment suppliers.”

The company also noted that it had been granted Validated End-User (VEU) authorization by the BIS and the company hosted several visits from U.S. Government officials. It also stated that any assumptions of the it’s ties with the Chinese military are untrue statements and false accusations.

SMIC’s Gross profit was $248.6 million in 2Q20. This represents an increase of 6.4 per cent QoQ from $233.6 million in 1Q20 and 64.5 per cent YoY from $151.2 million in 2Q19. It’s gross margin was 26.5 per cent in 2Q20, compared to 25.8 per cent in 1Q20 and 19.1 per cent in 2Q19.

The company is expecting its revenue to increase by one to three per cent QoQ during 3Q 2020. It also expects gross margin to range from 19 to 21 per cent during the ongoing quarter.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Crompton Greaves Starts Kitchen Appliance Manufacturing In Vadodara

0
This move aims to boost product quality and operational efficiency, enhancing the delivery of innovative, high-quality kitchen solutions to meet growing consumer demands. Crompton Greaves...

Advancing  Manufacturing Sector With New Refrigerator Plant

0
By incorporating advanced backward integration processes, this plant sets to redefine industry standards, promising improved efficiency and reduced environmental impact, while also boosting local...

EV Sales In India Fall Face First From March to April 2024

0
Electric Vehicle sales, across segments, have fallen short of the promise the sector was witnessing over the last few months. Despite the extension of FAME scheme for...

Buzz

Leapmotor Set To Launch Tiago EV Competitor And SUV In India

0
This year, the company carried out a feasibility study and has reached a decision; an announcement is expected very soon, with a probable entry...

Royal Enfield Establishes EV Commercial Team

0
The company's management stated that they had developed a comprehensive product plan and a future roadmap for electric vehicles, but they did not reveal...
Tata

Tata CFO Balaji Advocates Asset-Light Model For E-Bus Procurement

0
Balaji's comments were made following a question about the Uttar Pradesh State Transport Corporation's recent announcement of a tender for 5,000 electric buses, which...

Important Sectors

Leapmotor Set To Launch Tiago EV Competitor And SUV In India

0
This year, the company carried out a feasibility study and has reached a decision; an announcement is expected very soon, with a probable entry...

Royal Enfield Establishes EV Commercial Team

0
The company's management stated that they had developed a comprehensive product plan and a future roadmap for electric vehicles, but they did not reveal...
Tata

Tata CFO Balaji Advocates Asset-Light Model For E-Bus Procurement

0
Balaji's comments were made following a question about the Uttar Pradesh State Transport Corporation's recent announcement of a tender for 5,000 electric buses, which...

Atul Aggarwal Named New Managing Director Of Sterling Tools

0
In his new position, Atul Aggarwal, who serves as a whole-time director as well, will lead the company's expansion and development into new verticals. Sterling...

Ola Secures Patents For Three Electric Bike Designs

0
The electric bike features dual rear shock absorbers and a motor mounted on the hub. Ola has successfully secured patents for three new electric bike...

Manufacturing

Atul Aggarwal Named New Managing Director Of Sterling Tools

0
In his new position, Atul Aggarwal, who serves as a whole-time director as well, will lead the company's expansion and development into new verticals. Sterling...
Sona Comstar

Sona Comstar’s 3-Pronged Global Strategy To Outperform China In EV Parts Supply

0
Sona BLW Precision Forgings (Sona Comstar) has adopted a three-pronged strategy: leveraging the protectionist policies of the US and Indian governments to exclude Chinese...

Nokia Collaborates With Dixon Technologies Unit For Telecom Production

0
Dixon Technologies Vice Chairman and Managing Director Atul B. Lall mentioned that the product development is nearing completion, and they expect to begin commercial...

EMotorad’s Gigafactory For E-Cycles Nears Completion

0
The gigafactory for the e-cycle manufacturer is under construction in four stages. This facility will produce various parts such as batteries, motors, displays, and...

Zen Mobility Opens Micro Pod Plant In Manesar With 50K Capacity

0
In addition to manufacturing, the facility also contains sophisticated research and development centers focused on design engineering and product planning. Zen Mobility recently opened its...