Chinese chipmaker Semiconductor Manufacturing International Corp (SMIC) reported a surge of 137.8% in net profits in 2021, buoyed by increased wafer shipments and higher average selling prices. SMIC reported net profits of USD1.7 billion in a fiscal filing to the Hong Kong stock exchange. The company raked in revenues of USD5.44 billion last year, up 39.3% from the previous year. Its wafer revenues rose by 43.4% year-on-year to reach USD4.98 billion. A breakdown of its revenues by application showed that smartphones made up 32.2% of SMIC's wafer revenues, while those from consumer electronics accounted for 23.5% and from smart homes 12.8%. In technology terms, SMIC generated 29.2% of its wafer revenues from semiconductors of 55 to 65 nanometers, while chips of 40 to 45 nanometers contributed 15%, and more mature process nodes of 28 nanometers accounted for 15.1%. By comparison, SMIC's revenues from chips of 28 nanometers or smaller stood at 9.2% in 2020 and 4.3% in 2019.
In another sign of the progress the company is making in technology, SMIC had 12,467 patents on integrated circuits at the end of last year, including 10,698 invention patents. It also had 94 IC layout design rights. SMIC warned of the fallout of trade frictions on its businesses. “Economic globalization has encountered ups and downs, and multilateralism has been hit. In particular, the China-U.S. economic and trade friction has adversely affected the production and operation of some enterprises and market expectations,” SMIC said in its filing. If trade tensions between China and the U.S. and other economies continue to escalate, with heightened import and export restrictions, and higher tariffs among other trade barriers, the company may face risks such as shortages or rising prices for production materials.
Additionally, “the U.S.' enhanced export controls targeting Chinese top high-tech companies may restrict the wafer foundry and supporting services provided by the company to certain customers, and the company may face limited production capacity and reduced orders,” according to SMIC. SMIC said that its production and operations remain normal and the company would keep a close eye on the Covid situation in Shanghai, the Global Times reports.
