The Wall Street Journal reported on November 12 that Semiconductor Manufacturing International Corporation (SMIC), China’s largest chip foundry, saw its profit more than double in the third quarter, with revenue reaching a new record high. The report noted that while artificial intelligence chips are not SMIC’s core business, the surge in computing demand has generated significant spillover effects.
According to Reuters coverage on the same day, SMIC posted a net profit of $428.4 million for the third quarter, a year-on-year increase of 123.4%; revenue rose 33.9% to $3.19 billion, both surpassing market expectations. Gross margin reached 29.9%, up from 25.3% in the previous quarter, and exceeded the company’s guidance range of 26% to 28%.
Capacity utilization stood at 97.3% during the quarter, an increase of 3.6 percentage points from the prior quarter. Shipments totaled approximately 3.03 million equivalent wafers, a 5.7% month-over-month rise. Revenue from mainland China accounted for 90.8% of total sales, while the United States’ share declined from 8.2% to 7.8%. The company stated it will continue expanding production capacity in response to customer demand.
Original source: toutiao.com/article/1881664191092745/
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