Hungry for growth, China’s top chipmaker SMIC budgets US$2.1 bln for foundry operations after record 2015
Shanghai-based chipmaker moving to raise capacity at three of its six fabrication plants - or fabs - on the mainland
Semiconductor Manufacturing International Corp (SMIC), China’s largest contract chipmaker, plans to significantly raise its production capacity this year to meet strong market demand, after posting record-high net profit and revenue last year.
The Shanghai-based company has budgeted about US$2.1 billion in capital expenditure for its foundry operations, up from US$1.4 billion last year, to ratchet up the capabilities at three of its six fabrication plants, or fabs, on the mainland.
“By the end of this year, we [aim] to increase our Shenzhen fab capacity to approximately 30,000 8-inch wafers per month, our Beijing joint-venture fab to 15,000 12-inch wafers per month, and our Shanghai 12-inch fab to 20,000 wafers per month,” SMIC chief executive Chiu Tzu-yin said in a conference call with analysts on Friday.
“We are optimistic about 2016 given our strategy and execution track record.”
Listed in both Hong Kong and New York, SMIC reported a 36 per cent jump in fourth-quarter net profit to a record US$38.6 million, up from US$28.4 million in the same period one year earlier. This was largely driven by more wafer shipments.