Technology Author: EqualOcean News, Yiru Qian Editor: Luke Sheehan Nov 12, 2021 04:57 PM (GMT+8)

SMIC said the capacity failure to meet customer demand is expected to continue into the whole year of 2022.

SMIC International

According to the Q3 performance report for 2021:

- The net profit attributable to shareholders of listed companies was CNY 2,077 million, increasing by 22.6% year-on-year; revenue increased by 21.5% to CNY 9.28 billion and the gross margin was 30.2%, increasing by 3.9% compared with the same period last year.

- For the first three quarters of 2021, SMIC's revenue was CNY 25,371 million (up 22% YoY), and net profit was CNY 7,318 million (up 137.6% YoY).

- The research and development investment totaled CNY 1.08 billion, accounting for 11.7% of the revenue. 

- The revenue of main businesses was CNY 9.15 billion, increasing by 21.9% compared with the same periord last year, among which the revenue generated from wafer fabracation accounting for 93.9%.

- For Q4, SMIC expects the revenue to grow by 11% to 13% month-on-month, with gross margin growth ranging from 31% to 33%.

However, SMIC's share price continued to fall following the announcement of this positive finanical results. As of the press time, the company's share price has fallen by more than 5%, wiping more than CNY 20 billion off its market value.

Founded in April 2000, SMIC is one of the world's leading integrated circuit chip foundry companies and the largest and most advanced chip foundry company in mainland China. The company provides chip manufacturing services from 0.35 microns to 90 nanometers and more advanced processes to customers worldwide.