Rising wafer shipments and ASPs boosted pure-play foundry SMIC's revenue and net profits in the first half of 2020.

SMIC disclosed in its mid-year financial report that revenue surged 29.4% on year to CNY13.16 billion (US$1.92 billion) in the first half of 2020, with gross margin climbing 2.5pp from a year earlier to 23.5%. The company generated net profits of CNY1.39 billion, up a robust 329.8% from the same period in 2019.

SMIC shipped about 2.8 million 8-inch equivalent wafers in the first half of 2020, up 19.7% on year, while its wafer ASPs rose to US$649 from US$615 during the same period in 2019.

Revenue generated from 28nm and 14nm process technologies accounted for 9.1% of SMIC's total wafer sales in the first half of 2020, up 5.3pp on year. The sales proportion is set to continue growing.

SMIC saw orders placed by its China-based clients generate CNY8.49 billion in revenue during the first half of 2020. The revenue from China represented a 51.5% on-year increase, and accounted for over 60% of SMIC's total revenue during the six-month period.

SMIC expects to post a 15-19% revenue increase in 2020, despite the coronavirus-induced unfavorable business environment.

By: DocMemory
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