China-based Semiconductor Manufacturing International Corp (SMIC) remained bullish on its 2021 prospects, despite tight production capacity for its advanced chips and US restrictions on its suppliers.
On an earnings call, the company predicted mid-to-high single-digit revenue growth in 2021, though CFO Gao Yonggang said this assumed no significant adverse impact on operational continuity resulting from US sanctions.
Without the clampdown, its forecast would have been on par with growth in 2020, it stated.
It noted tight capacity for the foundry industry, strong demand for its advanced processors, and said its capacity to produce specific chips would remain “fully loaded” for the next few quarters.
Gao tipped revenue to increase 14 per cent year-on-year to $2.1 billon in H1.
Co-CEO Zhao Haijun said while it continues to add production capacity to match demand, longer lead times for manufacturing equipment means it won’t be installed until H2, so won’t contribute to revenue until 2022.
Net profit nearly tripled year-on-year to $257 million during Q4 2020, as revenue increased 16.9 per cent to $981 million. Smartphone chips accounted for 36.7 per cent of this.
The company earmarked $4.3 billion in capex for 2021, down from $5.7 billion in 2020.Subscribe to our daily newsletter Back