SMIC has reported a revenue of $1.84 billion in 1Q22, up by 16.6% from the previous quarter, and by 66.9% from the same period last year.
Semiconductor Manufacturing International Corp. (SMIC), one of the leading semiconductor foundries worldwide, has reported a revenue of $1.84 billion in the first quarter of 2022 (1Q22), up by 16.6% from the previous quarter, and by 66.9% from the same period last year.
Gross profit was $750.3 million in 1Q22, an increase of 35.7% QoQ and 200% YoY.
According to the company, events such as the epidemic and local conflicts occurring overseas during the first half of 2022 have brought uncertainties to the development of the global IC industry. While the demand for consumer electronics is soft, the demand growth in new energy vehicles, display panels and industrial sectors has led to a short-term intensification of the structural shortage of semiconductor manufacturing capacity. With SMIC’s planning and deployment to address the shortage in the market, the company has carried out early capacity allocation optimization and adjustment, and has orderly promoted capacity construction in the past six months.
This year, the cities where some of SMIC’s fabs are located have experienced the epidemic at different times. Facing this challenge, the company went full force to implement various preventative and control measures to guard against the epidemic, in order to build a safety barrier for employees and ensure production, making every effort to assure customer demand.
With the efforts and dedication of all employees, the first quarter revenue and gross margin maintained growth. Gross margin exceeded guidance primarily due to two reasons: first, due to the epidemic, the company postponed the scheduled maintenance of some fabs; second, the impact of the epidemic on the Tianjin and Shenzhen fabs was lower than expected.
In the second quarter, SMIC expects revenue to increase by 1% to 3% sequentially, and gross margin to be in the range of 37% to 39%, due to the deferral of annual maintenance at some fabs into the current quarter and the short-term impact of the epidemic on utilization at the Shanghai fabs.