Semiconductor Manufacturing International Corporation (SMIC) has reported net losses of US$482.3 million for the fourth quarter of 2009 compared to losses of US$124.5 million a year ago and losses of US$69.3 million in third-quarter 2009.

SMIC revealed that it recognized charges totaling US$438.8 million in the fourth quarter, which included US$299.7 million related to the settlement of litigation with Taiwan Semiconductor Manufacturing Company (TSMC). It settled a dispute regarding trade secrets with the Taiwan-based rival in November 2009.

Despite the profit drop, SMIC said revenues grew 3% sequentially and 22.2% on year to US$333.1 million in the fourth quarter. Gross margin for the quarter improved to 10.6% compared to 0.8% in the third quarter, primarily thanks to wafer shipment and utilization growth.

SMIC said the China market contributed 21% to its fourth-quarter revenues, and sales from China increased 7% on quarter and 23.6% on year. Greater China accounted for 38.1% of SMIC's total revenues for thefourth quarter.

SMIC CEO David NK Wang commented that 2010 looks to be a good year for the semiconductor industry. "We believe it will also be an important step on our journey toward sustained profitability," he said.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved