China’s SMIC remains the country’s largest contract chipmaker, and its financials are inevitably subject to geopolitical pressures as Chinese chip designers seek independence from imports in many cases. SMIC’s revenue rose 21.8% last quarter, but net profit fell 59.1%.
Image source: SMIC
A succinct summary of SMIC’s quarterly report Reuters The company’s revenue in the last quarter grew by 21.8% to $1.9 billion, beating analysts’ expectations. At the same time, capital expenditures reached $2.25 billion, and net profit fell by 59.1% to $164.6 million. However, it was significantly higher than analysts’ expectations of $103.8 million.
As recently reported by the SIA, the semiconductor market in China grew by 21.6% in monetary terms in the second quarter. Of course, SMIC cannot compete in revenue dynamics with Taiwanese giant TSMC, which increased the corresponding figure by 40% in the second quarter, but for the difficult conditions in which SMIC has to operate, it has been doing well so far. In the current quarter, the company expects to consistently increase revenue by 13-15%.
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