SMIC third-quarter net profit surges 123 per cent to US$428.4 million
Semiconductor Manufacturing International Corporation reported a 123.4 per cent year-on-year rise in third-quarter net profit to US$428.4 million, driven by record revenue of US$3.19 billion amid strong domestic demand.
Semiconductor Manufacturing International Corporation (SMIC) on Thursday reported a 123.4 per cent year-on-year surge in third-quarter net profit to US$428.4 million (HK$3.34 billion), as strong domestic demand pushed revenue to a record high.
Revenue for the three months ended September jumped 33.9 per cent year-on-year to US$3.19 billion. Gross margin expanded to 29.9 per cent from 25.3 per cent in the previous quarter, driven by an improved product mix and a near-full capacity utilisation rate of 97.3 per cent.
While profit from operations climbed 32.9 per cent quarter-on-quarter to US$710 million, overall net profit fell 10.6 per cent sequentially. The drop was largely due to a US$32.1 million net loss in other income, primarily stemming from decreased fair value gains in its investment portfolios.
Looking ahead to the fourth quarter, the chipmaker expects revenue to grow 4 to 6 per cent sequentially, though gross margin is projected to soften to a range of 26 to 28 per cent.
SMIC's reliance on the domestic market deepened, with revenue from China rising to 90.8 per cent of the total, while the US market share shrank to 7.8 per cent. Wafers accounted for 95.9 per cent of total revenue, a further increase from the previous quarter and the same period last year. Other services, such as photomask manufacturing and testing, accounted for 4.1 per cent.
Consumer electronics remained the largest source of revenue, accounting for 40.6 per cent. In a structural shift, demand for industrial and automotive chips, as well as computers and tablets, outpaced the smartphone sector, where demand declined to 14.3 per cent.