Semiconductor Manufacturing International Corp (SMIC), China’s largest semiconductor contract manufacturer, closed the week with a quarterly report. The company said strong domestic demand is helping it generate stable profits despite tough United States measures that have limited SMIC’s access to US technology since last year. At the same time, SMIC admits that trade restrictions imposed by Washington hinder the company’s technological development.
SMIC’s revenue from April to June was $ 1.34 billion. This is 43% more than in the same period last year. Net profit in annual terms increased almost five times and reached $ 687.8 million.
The chipmaker raised its full-year revenue growth forecast to 30% as it continues to work with suppliers to reduce the impact of US export restrictions. According to the company’s management, in the next quarter or early next year, it will be able to expand production capacity at factories in Beijing, Tianjin and Shenzhen. The corresponding equipment is gradually arriving in China. This means that the company was able to at least partially overcome the repressive measures of the United States. Recall that manufacturers of equipment containing more than 25% of American technology are required to obtain a license from the United States to supply it to SMIC. This led to some delays in the implementation of SMIC’s plans to expand production.
Let’s clarify that we are talking about fairly old technical processes. The delivery of equipment suitable for the production of products at 28 nm or less is not yet possible.
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