Shanghai, China – August 5, 2021 – Semiconductor Manufacturing International Corporation (SEHK: 00981; SSE STAR MARKET: 688981) (“SMIC”, the “Company” or “we”), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended June 30, 2021.
Second Quarter 2021 Highlights
- Revenue was $1,344.1 million in 2Q21, an increase of 21.8% QoQ from $1,103.6 million in 1Q21, and 43.2% YoY from $938.5 million in 2Q20.
- Gross profit was $405.0 million in 2Q21, an increase of 61.9% QoQ from $250.1 million in 1Q21, and 62.9% YoY from $248.6 million in 2Q20.
- Gross margin was 30.1% in 2Q21, compared to 22.7% in 1Q21 and 26.5% in 2Q20.
Third Quarter 2021 Guidance
The following statements are forward looking statements based on current expectations and involved risks and uncertainties.The Company expects (in according with IFRS):
- Revenue toincreaseby 2%to 4%QoQ.
- Gross margin to range from 32% to 34%.
Dr. Gao Yonggang, Chief Financial Officer of SMIC commented:“The Company’s key financial metrics were better than expected in the second quarter. Revenue in the second quarter was $1,344 million, an increase of 21.8% quarter over quarter and an increase of 43.2% year over year. Gross margin was 30.1%, up 7.4 percentage points quarter over quarter, and up 3.6 percentage points year over year.
Revenue in the third quarter is expected to grow 2% to 4% sequentially, and gross margin is expected to range from 32% to 34%. Based on the first-half results and the second-half outlook, and under the uncertain assumption of a relatively stable external environment, we now raise our annual revenue growth target and gross margin target to be around 30% respectively. The adverse impact of advanced technology to the company's overall gross margin is expected to decrease to around 5 percentage points, due to depreciation and amortization allocated to more output.
The company still faces impact brought by the Entity List, and there are still uncertainties with our expectations in indicators. We will do our best to solve the problems, to ensure operation continuity and improve performance, for a better return to our shareholders.”
Dr. Haijun Zhao and Dr. Liang Mong Song, Co-CEOs of SMIC commented:“Since being placed on the Entity List last year, SMIC has been proceeding forward through difficult circumstances, and the entire company has been working hard. In terms of operation continuity, we are actively working with our suppliers to ensure that our commitments to customers are met, and the risks of uncertainty of mature technology is further reduced. In terms of capacity expansion, its progress is rolling out as planned. However, uncontrollable factors such as license approvals, supply chain tightness, and logistics impacted by the epidemic have also inevitably affected the equipment arrival times. The company will make every effort to optimize the internal procurement process and speed up the efficiency of capacity installation, in order to shorten the procurement cycle as much as possible and reach production as soon as possible.
We understand that people have high expectations for SMIC, but there is no shortcut or leaping forward in the semiconductor manufacturing industry. We will take one step at a time, grasp our own advantages in specific market segments, improve our core competitiveness and enhance customer satisfaction.”
To see the complete results including financial tables, please click here:
Conference Call / Webcast Announcement
Date: Friday, August 6, 2021
Time: 8:30 A.M. (China Standard Time)
The call will be webcast live at:
Please register in advance for the conference call at: http://apac.directeventreg.com/registration/event/3785105
Recording will be available approximately 1 hour after the event and it will be archived for 12 months.
Semiconductor Manufacturing International Corporation (“SMIC”, SEHK: 00981; SSE STAR MARKET: 688981) and its subsidiaries constituting one of the leading foundries in the world, is the most advanced and the largest foundry withthe broadest technology coverage and the most comprehensive semiconductor manufacturing services in Chinese Mainland. SMIC Group provides integrated circuit (“IC”) foundry and technology services on process nodes from 0.35 micron to 14 nanometer. Headquartered in Shanghai, China, SMIC Group has an international manufacturing and service base. In China, SMIC has a 200mm wafer fabrication facility (“fab”) and an effectively controlled joint-venture 300mm fab for advanced nodes in Shanghai; a 300mm fab and a majority-owned 300mm fab in Beijing; 200mm fabs in Tianjin and Shenzhen. SMIC Group also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan China, and a representative office in Hong Kong China.
For more information, please visit www.smics.com.