Chip maker SMIC on target for 20pc growth this year
Chief executive Chiu Tzu-yin confident of a continued environment for growth for the semiconductor industry
Semiconductor Manufacturing International Corp (SMIC), mainland China's largest contract chip maker, reaffirmed its 20 per cent annual revenue growth target this year after posting record high sales of nearly US$3 billion last year.
Chief executive Chiu Tzu-yin said in a conference call with analysts on Wednesday that the company was hopeful of a continued environment for growth in the semiconductor industry, despite speculation about some disruption in global trade.
Chiu pointed out that North America, where Qualcomm is a major customer, could deliver revenue growth above SMIC’s other geographic markets for this year, as the company ramps up production capacity on the mainland and at subsidiary LFoundry’s operation in Italy.
We’re targeting an 11 per cent increase in installed capacity to close out this year at 450,000 wafers per month, compared with 406,000 per month in 2016
“We’re targeting an 11 per cent increase in installed capacity to close out this year at 450,000 wafers per month, compared with 406,000 per month in 2016,” he said.
SMIC, however, reiterated the company’s revenue is expected to decline between 2 per cent and 4 per cent quarter on quarter in the three months to March 31.
The company’s share price fell 3.19 per cent to HK$10.94 at the close of trading in Hong Kong on Wednesday.
According to Daiwa Capital Markets analysts Rick Hsu and Martin Lee, that shortfall in the first quarter “would have to do with one of its customers in fingerprint applications cutting orders”.