Biz / Tech

SMIC to be the first STAR-listed firm uncapped of unprofitably sign

Zhu Shenshen
Booming demand for chips used in phones, electronics and cars benefits Shanghai-based firm, the Chinese mainland's biggest chipmaker, as it became profitable in 2020.
Zhu Shenshen

Semiconductor Manufacturing International Corp (SMIC) turned black from red in 2020 as the Chinese mainland’s biggest chipmaker benefited from a booming demand for chips used in phones, electronics and cars, the Shanghai-based firm said on Thursday.

SMIC is also the first STAR-listed company to get rid of the special “U” sign meaning unprofitably, after it posted profitability last year. 

In 2020, SMIC’s net profit jumped 141.5 percent to hit 4.33 billion yuan (US$676.6 million). Its revenue reached 27.4 billion yuan with a growth of 24.8 percent, the company said in a statement.

In 2021, SMIC’s capital spending may hit 28.1 billion yuan on capacity expansion in mature technologies and some on advanced technology innovations. 

In the first two months, the Chinese mainland’s integrated circuit output jumped 80 percent to 53 billion units.

SMIC is expected to benefit the city’s long-term strategy. 

Shanghai’s semiconductor industry revenue hit 180 billion yuan in 2020, one-fifth of the national level. The scale of the semiconductor industry will double in the next five years, according to city government officials.

SMIC and semiconductor shares surged on Thursday. 

SMIC gained 2.89 percent to 55.89 yuan. STAR-listed AMEC, the Chinese mainland’s biggest semiconductor equipment maker, surged 6.87 percent to close at 114.9 yuan. Changdian, China's top chip assembly and testing firm, increased 3.07 percent to 35.24 yuan.

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