Today SMIC ( SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION ) announced reports All currency figures stated in this report are in US Dollars unless stated otherwise.
The consolidated financial information is prepared in accordance with International Financial Reporting Standards (“IFRS”) and is presented in accordance with IFRS unless otherwise stated below.
Shanghai, China – August 5, 2021 – Semiconductor Manufacturing International Corporation (SEHK: 00981; SSE STAR MARKET: 688981) (“SMIC”, the “Company” or “we”), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended June 30, 2021.
Second Quarter 2021 Highlights
- Revenue was $1,344.1 million in 2Q21, an increase of 21.8% QoQ from $1,103.6 million in 1Q21, and 43.2% YoY from $938.5 million in 2Q20.
- Gross profit was $405.0 million in 2Q21, an increase of 61.9% QoQ from $250.1 million in 1Q21, and 62.9% YoY from $248.6 million in 2Q20.
- Gross margin was 30.1% in 2Q21, compared to 22.7% in 1Q21 and 26.5% in 2Q20.
Third Quarter 2021 Guidance
The following statements are forward looking statements based on current expectations and involved risks and uncertainties.The Company expects (in according with IFRS):
- Revenue toincreaseby 2%to 4%QoQ.
- Gross margin to range from 32% to 34%.
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- Revenue was $1,344.1 million in 2Q21, an increase of 21.8% QoQ from $1,103.6 million in 1Q21. Revenue increased mainly due to the increase in wafer shipment and average selling price in 2Q21.
- Cost of sales was $939.1 million in 2Q21, compared to $853.5 million in 1Q21. Cost of sales increased mainly due to the increase in wafer shipment in 2Q21.
- Gross profit was $405.0 million in 2Q21, an increase of 61.9% QoQ from $250.1 million in 1Q21. Gross profit increased in 2Q21 mainly due to the increase in wafer shipment and average selling price in 2Q21.
- Gross margin was 30.1% in 2Q21, compared to 22.7% in 1Q21.
- Operating income was $132.8 million in 2Q21, compared to $125.5 million operating expenses in 1Q21, mainly due to the reasons stated in Operating (Income).
- Other income, net was $142.7 million gain in 2Q21, compared to $16.9 million gain in 1Q21.
According to Dr. Gao Yonggang, Chief Financial Officer of SMIC commented:“The Company’s key financial metrics were better than expected in the second quarter. Revenue in the second quarter was $1,344 million, an increase of 21.8% quarter over quarter and an increase of 43.2% year over year. Gross margin was 30.1%, up 7.4 percentage points quarter over quarter, and up 3.6 percentage points year over year.
Revenue in the third quarter is expected to grow 2% to 4% sequentially, and gross margin is expected to range from 32% to 34%. Based on the first-half results and the second-half outlook, and under the uncertain assumption of a relatively stable external environment, we now raise our annual revenue growth target and gross margin target to be around 30% respectively. The adverse impact of advanced technology to the company’s overall gross margin is expected to decrease to around 5 percentage points, due to depreciation and amortization allocated to more output.
The company still faces impact brought by the Entity List, and there are still uncertainties with our expectations in indicators. We will do our best to solve the problems, to ensure operation continuity and improve performance, for a better return to our shareholders.”
Semiconductor Manufacturing International Corporation (“SMIC”, SEHK: 00981; SSE STAR MARKET: 688981) and its subsidiaries constituting one of the leading foundries in the world, is the most advanced and the largest foundry with the broadest technology coverage and the most comprehensive semiconductor manufacturing services in Chinese Mainland. SMIC Group provides integrated circuit (“IC”) foundry and technology services on process nodes from 0.35 micron to 14 nanometer.
Headquartered in Shanghai, China, SMIC Group has an international manufacturing and service base. In China, SMIC has a 200mm wafer fabrication facility (“fab”) and an effectively controlled joint-venture 300mm fab for advanced nodes in Shanghai; a 300mm fab and a majority- owned 300mm fab in Beijing; 200mm fabs in Tianjin and Shenzhen. SMIC Group also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan China, and a representative office in Hong Kong China.