Chinese manufacturing giant, Huawei, has a way of putting other Chinese manufacturers in the limelight. BOE, a Chinese display manufacturer hit the global scene after Huawei used its display for the Mate 20 series. There are even rumors that Apple may use BOE's display in the future. Now, SMIC is not getting more attention after Huawei diverted the production of the Kirin 710A from TSMC to SMIC.
This afternoon, SMIC released its unaudited results for Q1 2020 ending March 31, 2020. Due to better-than-expected market demand and product structure, SMIC’s first-quarter revenue hit $905 million, an increase of 8% month-on-month, and a year-on-year increase of 35%. This is a new record high in quarterly revenue for SMIC. Furthermore, its communications, computer, and consumer electronics revenues grew YoY. Its market share is also gradually increasing.
SMIC expectations:
- Quarterly revenue to increase by 3% to 5% sequentially.
- The gross profit margin is in the range of 26% to 28%.
- Non-IFRS operating expenses will about $240 million
- Non-controlling interests will range from $0 to $10 million (losses borne by non-controlling interests).
SMIC's mature technology platform has a full capacity: camera, power management, fingerprint recognition, special storage, and other related applications that are in strong demand. Its advances in technology research and development are progressing smoothly. It is also expanding to other fields of communications, mobile phones, automobiles, and consumer electronics. SMIC has decided to increase its capital expenditure by $ 1.1 billion to $ 4.3 billion to fully meet market demand.
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