Semiconductor Manufacturing International (SMIC) has revealed its financial result and key achievements during the April-June quarter of 2024.
SMIC’s revenue was $1,901.3 million in 2Q24, compared to $1,750.2 million in 1Q24, and $1,560.4 million in 2Q23. Gross profit was $265.1 million in 2Q24, compared to $239.7 million in 1Q24, and $316.5 million in 2Q23. Gross margin was 13.9 percent in 2Q24, compared to 13.7 percent in 1Q24 and 20.3 percent in 2Q23.
SMIC, one of the main suppliers to China-based smartphone maker Huawei, said 8-inch equivalent wafer shipments increased by 18 percent sequentially to more than 2.11 million. 8-inch wafers contributed 26.4 percent and 12-inch wafers 73.6 percent of its revenue. SMIC says blended ASP declined by 8 percent sequentially due to the changes in product mix.
SMIC has generated 32 percent of its total sales from Smartphone customers, 13.3 percent from Computer and Tablet, 35.6 percent from Consumer Electronics, 11 percent from Connectivity and IoT, and 8.1 percent from Industrial and Automotive.
SMIC has revealed that China accounts for 80.3 percent of its revenue, while America contributed 16 percent and Eurasia 3.7 percent.
SMIC is targeting growth of 13-15 percent sequentially in revenue and 18-20 percent in gross margin.
SMIC says monthly capacity increased to 837,000 8-inch wafers in 2Q24 from 814,500 8-inch wafers in 1Q24. Capital expenditure was $ 2,251.5 million in 2Q24, compared to $2,235.4 million in 1Q24, SMIC said.
Global semiconductor sales grew 18.3 percent to $149.9 billion in the second quarter, with the Chinese market growing 21.6 percent, according to the Semiconductor Industry Association.
Industry leader TSMC recently reported a 40 percent increase in second-quarter revenue, largely attributed to strong demand for advanced chips in AI and high-performance computing.
Baburajan Kizhakedath
