Biz / Tech

SMIC posts record-high profit, revenue in 3Q

Zhu Shenshen
China's largest chipmaker benefits from a booming market fueled by surging demand for smartphones, computers and industrial devices.
Zhu Shenshen

Semiconductor Manufacturing International Corp, the largest chipmaker on the Chinese mainland, posted record-high profit and revenue in the third quarter, the Shanghai-based firm said on Thursday. The company also raised its full-year results forecast for 2020.

SMIC, which listed on the Shanghai STAR Market in July, posted net profit of 3.08 billion yuan (US$452.9 million) in the third quarter, a 169 percent increase year on year. Revenue increased 30.2 percent to 20.8 billion yuan.

"In the third quarter, the company achieved historical highs" in revenue and profit, the company said in a statement to the Shanghai Stock Exchange.

Expected annual revenue growth was revised to 24 to 26 percent, higher than a previous forecast, according to SMIC.

SMIC benefits from a booming chip market thanks to surging demand for smartphones, computers and industrial devices.

Global integrated circuit market revenue will more than double to US$1 trillion in 2030 with developments such as AI, 5G and smart driving, said CCID Group, a state-level research organization.

But SMIC also admitted that its business is influenced by US tech export controls.

“Currently, the company is operating as usual, and though the export restrictions will have an impact on us, in the near term we believe it is manageable,” said SMIC.

Since its inception, SMIC strictly operates in compliance with the laws and regulations of all jurisdictions in which it operates, said SMIC.

SMIC shares increased 0.81 percent to close at 61.86 yuan on Thursday.

SMIC is now valued at 473.6 billion yuan, making it No. 1 in value on the STAR Market.

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