SHANGHAI, Nov. 11, 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 September 30, 2021.
2021 Third Quarter Highlights
- Revenue was $1,415.3 million in 3Q21, an increase of 5.3% QoQ from $1,344.1 million in 2Q21, and 30.7% YoY from $1,082.5 million in 3Q20.
- Gross profit was $467.9 million in 3Q21, an increase of 15.5% QoQ from $405.0 million in 2Q21, and 78.6% YoY from $262.0 million in 3Q20.
- Gross margin was 33.1% in 3Q21, compared to 30.1% in 2Q21 and 24.2% in 3Q20.
Fourth Quarter 2021 Guidance
The following statements are forward looking statements based on current expectations and involved risks and uncertainties. The Company expects (in accordance with IFRS):
- Revenue to increase by 11% to 13% QoQ.
- Gross margin to range from 33% to 35%.
SMIC management commented: "Since SMIC was placed on the "Entity List" by the U.S., the company has faced tremendous challenges in production and operations. Since the beginning of the year, we have focused on the two main priorities of ensuring operation continuity and continuous capacity expansion, realigning the supply chain and finding ways to optimize the procurement process, accelerate supplier qualification, and improve production planning and engineering management. At present, operation continuity has been basically stabilized, expansion of mature technology is progressing in an orderly manner and overall as scheduled, and advanced technology business is steadily improving. Starting from the second quarter, in response to the problem of capacity tightness, we have further defined our capacity allocation tactics. We orderly allocated capacity, optimized production scheduling and looked at the actual end demand from the perspective of end user companies, in order to support the needs of the overall customers and try our best to solve the problem of customer chip shortage.
In the face of complex situations, we continued to adhere to compliant operations, with a spirit of truthfulness and pragmatism, and continued to overcome difficulties with robust resilience, solid strategic focus and precise work tactics. This year's performance is expected to be improved significantly compared to the expectations at the beginning of the year.
Both revenue and gross margin for the third quarter reached record highs. Revenue was $1,415 million, up 5.3% sequentially and 30.7% year-over-year. Gross margin was 33.1%, up 3.0 percentage points sequentially and 8.9 percentage points year-over-year.
The company will continue to maintain growth momentum in the fourth quarter, with revenue expected to grow 11% to 13% sequentially and gross margin expected to range from 33% to 35%. Based on the results of the first three quarters and the guidance for the fourth quarter, the company's full-year revenue growth target is further revised upward to around 39% and gross margin target is maintained at around 30%.
Looking ahead to next year, we believe the overall market prosperity remains positive and the company's capacity shortage as compared to our customers' demand is expected to continue through next year. Building on this year's rapid growth, the company's revenue growth next year is expected to be no less than the industry average. We would like to thank all our employees, customers, suppliers, investors, and community for your trust and support!"
To see the complete results including financial tables, please click here: https://www.smics.com/uploads/618cf5dc/2021%20Q3%20Earnings%20Release_ENG_Final.pdf
Conference Call / Webcast Announcement
Date: Friday, November 12, 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:
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 with the 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; a 200mm fab in Tianjin and a majority-owned 200mm fab in 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.