China's leading foundry companies have reported significant increases in net profit, prompting both to accelerate expansion plans.
On the night of August 13, SMIC (Semiconductor Manufacturing International Corporation), the country's largest foundry, announced that its second-quarter revenue reached $3.056 billion, marking a 36.1% increase year-over-year and a 20% rise from the previous quarter. This is the first time SMIC's quarterly revenue has surpassed $3 billion.
SMIC's net profit for the second quarter was $479.2 million, a staggering 261.7% increase compared to the same period last year. The company's factory utilization rate rose to 93.7%. SMIC forecasts a revenue increase of 2% to 4% in the third quarter compared to the previous quarter. Capital expenditures for the second quarter were $1.8357 billion, up from $1.5628 billion in the first quarter.
SMIC stated, "We expect broad demand for semiconductor manufacturing to continue, and we will quickly expand new production capacity to alleviate supply chain shortages."
Similarly, Huahong Grace Semiconductor Manufacturing Corp., China's second-largest foundry, reported a second-quarter revenue of $717.5 million, which is a 26.8% increase year-over-year and an 8.6% increase from the previous quarter. Its net profit was $38.6 million, reflecting a 385.9% increase compared to last year. Huahong's factory utilization rate was 102.8% in the second quarter, and the company invested $356.6 million in capital expenditures during the same period.
Huahong also announced plans to steadily expand production capacity while enhancing specialized process technologies.
* This article has been translated by AI.
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