China-based Semiconductor Manufacturing International Corp (SMIC) more than doubled its profit in Q4 2021 despite trade sanctions reducing shipments to North America.

In an earnings release, the chipmaker predicted above-average annual revenue growth and capex of $5 billion compared with $4.5 billion in 2021, as it expands facilities and deploys three new projects to boost production capacity.

Revenue in the current quarter is expected to be between 15 per cent and 17 per cent higher than Q1 2021.

SMIC stated 2021 was “an exceptional year”, with a global chip shortage and strong demand for local manufacturing bringing new opportunities, though it noted obstacles arising from US trade restrictions.

Net profit in Q4 grew 107.7 per cent to $533.8 million and revenue 61.1 per cent to $1.6 billion.

Mainland China and Hong Kong accounted for 68.3 per cent of total revenue, up from 56.1 per in in Q4 2020. North America’s share dropped from 27.7 per cent to 19.6 per cent.

Smartphone chips made up 31.2 per cent of revenue compared with 36.7 per cent.

Capex nearly doubled to $2.1 billion and R&D expenses fell 11.5 per cent to $172.1 million.