SMM8 March 28: recently, SMIC issued its interim results announcement for 2020, with revenue of about 13.16 billion yuan, an increase of 29.4% over the same period last year, a net profit of about 1.39 billion yuan, an increase of 329.8% over the same period last year, and a gross profit margin of 23.5%, an increase of 2.5% over the same period last year. The company said that the revenue growth was mainly affected by the increase in the number of wafers sold during the period and the increase in average selling prices. The number of wafers sold increased by 19.7% from 2.4 million (equivalent to 8-inch wafers) in the same period last year to 2.8 million (equivalent to 8-inch wafers) during the reporting period. The average selling price (revenue divided by the total number of wafers sold) increased from 4285 yuan in the same period last year to 4631 yuan in the reporting period.
As a leading foundry enterprise in China, SMIC also bears the important task of domestic chip manufacturing at the same time. According to data from CICC Securities, SMIC will increase its capital expenditure to US $6.7 billion in 2020, with revenue of nearly 170-180%. Capital expenditure of 100-150% of revenue in the next few years will become the norm, mainly invested in the capacity expansion of very expensive advanced processes such as 14-12-7-8nm and 12 "65/55/45nm special processes, which will also increase the compound growth rate of production capacity to 10-12%. And more than 10 million pieces of 8-inch production capacity in 2025.
Due to the continuous "sticking neck" of chip technology in the United States, domestic replacement of chips has become a hot topic and focus in the market in recent years. According to relevant data, the self-sufficiency rate of chips in China is only about 30% in 2019 and 70% in 2025. Many enterprises have joined the wave of chip manufacturing, except SMIC. There are many well-known domestic chip foundry enterprises, such as Huahong Semiconductor, Huarun Micro, Yuexin Semiconductor, Wuhan Xinxin, founder Microelectronics, Xinen Semiconductor and so on. According to the data of the National Bureau of Statistics, the cumulative output of integrated circuits in China from January to June 2020 reached 114.68 billion, an increase of 16.4%.
Although it received the impact of the epidemic in the first half of the year, the semiconductor industry still developed rapidly. Taking SMIC as an example, the utilization rate of mature process capacity reached 98.6% in the second quarter, an increase of 0.1% from the previous quarter and 7.5% from the same period last year. The company said it would add 30,000 8-inch wafers and 20,000 12-inch wafers per month by the end of this year.
New Times Securities believes that as the second half of the year enters the peak season of consumer electronics and the epidemic is further controlled, downstream demand will further increase. At the same time, the company is now making full use of its production capacity, and capital expenditure in the second half of the year is expected to exceed US $4 billion, significantly higher than the US $2.12 billion in the first half of the year.
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