SMIC releases its 2020 semi-annual report, net profit soared 556%


On the evening of August 27, China's largest semiconductor manufacturing company SMIC announced its interim results.

According to its H-share semi-annual report, its revenue in the first half of the year was US$1.843 billion, a year-on-year increase of 26.3%, a record high.

Its net profit was US$202 million, up 556% year-on-year, a record high.

Due to the different accounting standards adopted by A shares and H shares, in the semi-annual report of A shares, SMIC achieved revenue of 13.16 billion yuan in the first half of the year, a year-on-year increase of 29.4%, and net profit of 1.39 billion yuan, a year-on-year increase of 329.8%.

The report also shows that domestic clients contributed 8.485 billion yuan in revenue to SMIC in the first half of the year, a year-on-year increase of 51.5%.

Domestic clients contributed about 65% of the revenue; the revenue contributed by clients in North America, Europe and Asia was 3.04 billion and 1.63 billion respectively. Domestic semiconductor companies are becoming the main driving force of SMIC's revenue.

The report also pointed out that the advanced technology research and development and business are progressing smoothly. The mass production of the first generation of advanced technology is also smooth, and new trial production projects are being progressed with domestic and international customers.

The second-generation platform of its advanced technology is advancing steadily and is currently in the stage of product testing.

Its capacity utilization in mature manufacturing processes continues to be fully loaded, and the demand for related applications such as cameras, power management, fingerprint recognition and special storage is strong.

SMIC reiterated that in order to meet the needs of mature process platforms and alleviate current capacity bottlenecks, the company will increase its monthly production capacity of 30,000 8-inch wafers and 20,000 12-inch wafers by the end of this year.

At the same time, the company will continue to advance the progress of research and development to seize market opportunities in mature and advanced nodes.

However, SMIC did not specify node information for its advanced processes.

According to the previous information, the first generation of its advanced technology refers to the 14nm and improved 12nm technology, and the second generation of the advanced technology refers to the n+1 and n+2 nodes, which should be between 10nm and 7nm. It is still under verification and no mass production.

According to information released by SMIC, when it was listed on the Science and Technology Innovation Board, a total of 20 billion yuan was raised.

Among them, 40% will be used in the 12-inch chip SN1 project to meet the needs of mature process platforms and ease capacity bottlenecks.

20% of the funds will be used as reserve funds for the company's advanced and mature process research and development projects to seize market opportunities at mature and advanced nodes.

The remaining 40% is used as supplementary working capital.


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