SMIC on track for record annual earnings, bolstered by robust global demand
Revenue at mainland China’s biggest contract chip manufacturer is forecast to reach US$2.88bn this year
Semiconductor Manufacturing International Corp (SMIC), mainland China’s largest contract chip maker, is looking to attain record-high earnings for this year after its quarterly net profit exceeded US$100 million for the first time in the three months to September 30.
The Shanghai-based company said on Tuesday that it was also ratcheting up expansion of production capacity across its Chinese fabrication plants and at LFoundry, its recently acquired contract integrated circuit manufacturer headquartered in Italy, to meet fast-growing demand.
“We are on track to achieve another record year of revenue and net profit,” SMIC chief executive Chiu Tzu-yin said in a conference call with analysts. “We had a fantastic third quarter, when we achieved our seventh consecutive quarter of revenue growth and 18th consecutive quarter of profit.”
SMIC is seeing robust demand across the board and we reiterate our growth target of 20 per cent compounded annual growth from 2016 to 2019
SMIC attributed that growth to a solid increase in silicon wafer shipments in the third quarter and revenue contribution from LFoundry, in which the company bought a majority stake in June for €49 million (HK$420.41 million) as its first overseas-based acquisition.
Total third-quarter revenue rose 36 per cent to a record-high US$774.84 million from US$569.85 million a year earlier.