ISemiconductor Manufacturing International (SMIC) has announced that net profits rose 85.7% sequentially to US$75.4 million in the second quarter of 2013.

SMIC's consolidated sales for the second quarter of 2013 represent growth of 28.3% on year and 7.9% on quarter. The firm disclosed its China-based clients accounted for 40.9% of the second-quarter sales, compared to 38.6% in the prior quarter and 32.7% in second-quarter 2012.

SMIC generated a second-quarter gross margin of 25%, up from 19.9% in the first quarter and 24.1% in second-quarter 2012. The foundry utilized 98.5% of its capacity in the second quarter, compared to 89% in the prior quarter and 95.2% a year earlier, the firm revealed.

"I am very pleased to report that SMIC has exceeded expectations," said company CEO and executive director Tzu-Yin Chiu. "Revenue from our China customers grew 14.3% sequentially and 60.6% on-year. Our 40/45nm revenue grew 71.9% sequentially contributing 10.0% of total wafer revenue compared to 6.4% in the first quarter of 2013."

Sales generated from 65nm and below processes accounted for a combined 40.9% of SMIC's total wafer sales in the second quarter of 2013, compared to 38.5% in the prior quarter and 33% a year ago. The 45/40nm process segment took a 10% share in second-quarter 2013, up 3.6pp on quarter and 9.8pp on year.

"Demand for our differentiated applications continues to be strong, especially in the areas of power management, CMOS image sensor, and EEPROM. In order to further capture the market opportunities and to enhance our position in differentiated technologies, we are looking into various opportunities to expand our 8-inch capacity," Chiu continued.

Looking forward, SMIC expects revenues (excluding Wuhan Xinxin silicon wafer shipments) to decrease 1% or increase by up to 2% sequentially. Revenues including wafer shipments from Wuhan Xinxin are expected to register flat growth or drop by up to 3% on quarter.

By: DocMemory
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