SMIC Reports 18% Decrease in Second Quarter Revenue
Yang Liang, August 10, 2023 – SMIC, the Chinese semiconductor manufacturer, released its second-quarter performance summary for 2023 on August 10. The company reported a revenue of $1.56 billion (approximately RMB 11.263 billion), slightly exceeding market expectations of $1.553 billion. However, this figure represents an 18% year-on-year decrease from $1.903 billion in the same period in 2022.
In terms of net profit, SMIC reported $402.8 million (approximately RMB 2.908 billion) for the second quarter, significantly surpassing market expectations of $184 million. However, compared to the $514 million achieved in the same period last year, this represents a 21.7% year-on-year decrease.
The revenue breakdown revealed that 79.6% of SMIC’s revenue in the second quarter came from China, followed by 17.6% from the United States. In terms of wafer size, 12-inch wafers accounted for 74.7% of revenue, while 8-inch wafers accounted for 25.3%.
SMIC’s production capacity also saw an increase, with monthly production capacity rising from 732,250 8-inch equivalent wafers in the first quarter of 2023 to 754,250 in the second quarter.
The company cited a 6.7% quarter-on-quarter increase in sales revenue during the second quarter, reaching $1.56 billion. However, this resulted in a slight decrease in gross profit margin to 20.3%, down 0.5 percentage points. SMIC explained that while 12-inch capacity demand remains strong, 8-inch customer demand remains weak, leading to lower capacity utilization compared to 12-inch, although it still exceeds the industry average.
Looking ahead, SMIC forecasts a 3% to 5% month-on-month increase in sales revenue for the third quarter. The company expects the gross profit margin to range between 18% and 20%. Additionally, SMIC anticipates rising shipments and an increase in depreciation for the third quarter. Overall, SMIC predicts that its second-half sales revenue will outperform the first half.
These results come at a time when the semiconductor industry is facing various supply chain challenges and global demand fluctuations. SMIC, China’s largest chipmaker, continues to navigate these challenges but remains optimistic about its future performance.