China-based Semiconductor Manufacturing International Corp (SMIC) issued a bullish revenue guidance for the full year but noted a capacity shortage in keeping up with robust customer demand is forecast to continue into 2022.
In a statement, the chipmaker said it expects to maintain growth momentum in the final quarter, and based on the first nine months results its full-year revenue growth target is revised upward to around 39 per cent. Looking to next year, it expects revenue to grow at least at the same pace as the industry average.
The company added its operation continuity has been stabilised, expansion of mature technology is progressing as scheduled, and its advanced technology business is steadily improving.
Net profit in Q3 grew 41.5 per cent from the same period in 2020 to $372.8 million on revenue of $1.42 billion, up 30.7 per cent. Its gross margin jumped to 33.1 per cent from 24.2 per cent in Q3 2020.
Smartphone chips made up 31.5 per cent of total sales, down from 46.1 per cent in Q3 2020. Mainland China and Hong Kong accounted for 66.7 per cent of sales, compared with 69.7 per cent a year earlier, while shipments to North America rose to 20.3 per cent from 18.6 per cent.
Capex in the quarter reached $1.1 billion, up from $771 million in Q2. Its full-year capex guidance is $4.3 billion, with the majority earmarked for expanding the capacity of mature technologies.
The company also announced its vice chairman Chiang Shang-Yi resigned, along with four directors.
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