On November 11, SMIC released its third quarter results report. According to the report, SMIC achieved sales of US$1.083 billion in the third quarter, an increase of 15.3% month-on-month and 32.6% year-on-year; gross profit was US$262 million, a month-on-month increase of 5.4% and a year-on-year increase of 54.3%. Gross profit margin in the third quarter of 2020 was 24.2%, compared to 26.5% in the second quarter of 2020 and 20.8% in the third quarter of 2019.
SMIC Chief Financial Officer Dr. Gao Yonggang said that the company’s revenue in the third quarter continued to reach a record high of 1.083 billion US dollars, the attributable profit attributable to the company was 256 million US dollars, and the profit before interest, tax, depreciation and amortization was 653 million US dollars. new highs. The full-year revenue growth forecast is revised up to 24% to 26%, and the full-year gross margin target is higher than last year.
Dr. Haijun Zhao and Dr. Mengsong Liang, co-CEOs of SMIC, commented: “Demand for mature application platforms remains strong, with significant revenue growth from power management, RF signal processing, fingerprint recognition, and image signal processing. The application of advanced technologies is diverse and the first The yield rate of the first-generation advanced technology has reached the industry’s mass production level, and the second-generation has entered small-scale trial production. The company’s production capacity has been steadily expanded, and the capacity utilization rate has remained high.
The external situation in 2020 will be complex and changeable. As a foundry company, SMIC faces diversified customers at home and abroad. Since its establishment, SMIC has strictly abided by the laws of the place where it operates and operated in compliance with laws and regulations. We maintain active communication with suppliers, customers and related agencies, and comprehensively evaluate the impact of US export controls on the company’s production and operations. At present, the company is operating normally, and export control will have a certain impact on the company in the short term, but the impact is controllable. The company will continue to follow up on this matter and continue to assess the impact. Thanks for the trust of customers, the support of suppliers and the joint efforts of all colleagues in the company. “
Specifically, the capacity utilization rate of SMIC in the third quarter of 2020 was 97.8%, and the monthly production capacity increased from 480,150 8-inch wafers in the second quarter to 510,150 8-inch wafers in the third quarter. This was due to the expansion of the capacity of the Beijing 300mm fab and the controlled Beijing 300mm fab in the third quarter.
If its revenue is classified by region, North America accounted for 18.6% of the revenue in the third quarter; Mainland China and Hong Kong accounted for 69.7% of the revenue in the third quarter, which was 66.1% in the previous quarter and 60.5% in the same period last year. Increase; Europe and Asia accounted for 11.7% of revenue in the third quarter.
In terms of wafer revenue analysis, by application, smartphones, smart home, consumer electronics, and others accounted for 46.1%, 20.5%, 17.0%, and 16.4% of wafer revenue in the third quarter; 28nm wafers accounted for 14.6% of wafer revenue in the third quarter, which was an increase from 9.1% in the previous quarter, and 40/45nm and 55/65nm wafers accounted for wafer revenue in the third quarter respectively. were 17.2% and 25.8%.
Looking ahead to fourth-quarter results, SMIC expects quarterly revenue to decline by 10% to 12% sequentially, with gross margins in the range of 16% to 18%. In addition, SMIC stated that the capital expenditure plan for 2020 was revised down from US$6.7 billion to US$5.9 billion, mainly due to the extension or uncertainty of the supply period of some machines due to US export controls, and the arrival of some machines due to logistical reasons. Delivery delayed.