Semiconductor Manufacturing International Corporation has reported net losses of US$963.54 million for the year ended December 31, 2009.

SMIC saw revenues for 2009 shrink to US$1.07 billion from US$1.35 billion posted in 2008, attributing the 20.9% revenue drop to a decrease in overall wafer shipments. SMIC shipped a total of 1,376,663 8-inch equivalent wafers in 2009, down 14.6% on year.

Looking into 2010, SMIC said its new management team led by CEO David NK Wang is ready to take on new challenges. Wang replaced Richard Chang as president and CEO of SMIC in November 2009.

SMIC said it posted a 10.6% gross margin in the fourth quarter of 2009, when the company remained unprofitable. It expects to maintain double-digit gross margins through the year's last quarter, according to the company. It said its product mix continues to improve and sales generated from 65nm continue to rise. SMIC noted it is focused on products with higher ASP.

In terms of revenue breakdown by technology node, SMIC revealed revenues from 0.13-micron and below technologies accounted for 48% of its total wafer revenues in 2009, compared to 39% in 2008. Revenues from 65nm contributed 1% to the sales.

SMIC said capex for 2009 totaled US$189.9 million, which was mainly allocated to 45nm R&D, capacity expansions at its 8-inch wafer fabs and DRAM-to-logic capacity conversion at its Beijing site. The China-based foundry has set a capex budget of US$330 million for 2010.

SMIC has revised upward its revenue guidance for the first quarter of 2010, projecting a 4-6% growth from US$333.1 million in the prior quarter. SMIC is aiming to return to profitability in 2010.

By: DocMemory
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