SMIC raises revenue, margin forecast for Q3

SMIC, the Chinese mainland’s biggest chipmaker, raised its revenue and profit margin expectations in the third quarter, the STAR-listed firm announced on Friday.

Revenue growth in the third quarter will hit 14 to 16 percent, compared with an original forecast of 1 to 3 percent. Gross profit margin will be 23 to 25 percent, compared with a previous forecast of 19 to 21 percent, the company said.

The upgraded outlook comes from rising prices and booming demand for chips, analysts said.

Global integrated circuit market revenue will more than double to US$1 trillion in 2030 with developments such as AI, 5G and smart driving, industry officials said during IC China 2020, an ongoing semiconductor conference in Shanghai.

In the second quarter, SMIC’s revenue hit US$938 million, up 18.7 percent year on year. Net profit hit a record high of US$134 million in the quarter.