SMIC rings up 9th straight profitable quarter
Beijing's plans boost semiconductor maker as it posts ninth successive quarter of profit
Semiconductor Manufacturing International Corp, which posted its ninth consecutive profitable quarter in the three months to June, expects to reap the rewards of the central government's new policy to promote its industry.
"As the largest semiconductor enterprise and the most advanced foundry in China, we are looking forward to a period of accelerated industry growth," SMIC chief executive Chiu Tzu-yin said yesterday.
The Shanghai-based contract chipmaker's optimism stems from the State Council's announcement in June of the "Guidelines to Promote National IC Industry Development", which sets out the central government's targets and long-term support for domestic designers, developers and manufacturers of integrated circuits.
This high-level framework proposes the setting up of a National Industry Investment Fund, managed by professional investors and used to inject an unspecified amount of capital into the mainland's semiconductor industry.
The financing will be used to expand plant capacity, research and development, and push for market consolidation.
Mark Li, a senior analyst at Bernstein Research, said in a report: "SMIC is well positioned to capture the growth in China."