SMIC was placed on the US entity list last year. It is still restricted from procuring related US-origin items and technologies
Semiconductor Manufacturing International Corporation (SMIC), a semiconductor foundry, has announced its consolidated results of operations for the three months ended 31 March 2021. The company’s revenue for the quarter was $1,103.6 million. This represents an increase of 12.5 per cent QoQ from $981.1 million in 4Q20, and 22 per cent YoY from $904.9 million in 1Q20.
“First quarter 2021 revenue and gross margin beat guidance, revenue was $1104 million, an increase of 12.5 per cent quarter over quarter and an increase of 22.0per cent year over year. Gross margin was 22.7 per cent, sequentially up 4.7 percentage points,” noted Dr Gao Yonggang, chief financial officer, SMIC.
He added, “Second quarter revenue is expected to grow 17 per cent to 19 per cent sequentially, and gross margin is expected to range from 25 per cent to 27 per cent. Revenue for the first half of 2021 will be expected to be around $2.4 billion.”
It is to be noted here that the SMIC was placed on the US entity list last year. It is still restricted from procuring related US-origin items and technologies. The company says there are still risks and uncertainties to our second half of 2021.
“In February, the annual forecast we gave were revenue growth target to be mid-to-high single digit percentage, and gross margin target to be in the mid-teens range. In light of the information currently available to the Company, and based on the uncertain assumption that operational continuity will not be significantly adversely affected, our annual revenue and gross margin are expected to beat original forecast,” read an official statement released by the company.
It continued, “However, out of an abundance of caution, we ask for your understanding that we will not provide an exact revised range of our second half and full-year expectation for the time being. We will do our best to ensure operation continuity and improve performance, for a better return to our shareholders.”
The company’s profit for the quarter stood at $250.1 million in 1Q21. This represents an increase of 41.5 per cent QoQ from $176.8 million in 4Q20, and 7.1 per cent YoY from $233.6 million in 1Q20. It’s gross margin was 22.7 per cent in 1Q21, compared to 18 per cent in 4Q20 and 25.8 per cent in 1Q20.
