SMIC net jumps 58pc on record revenue

Staff reporter

Semiconductor Manufacturing International's (0981) net profit surged 58.3 percent to US$148 million (HK$1.15 billion) in the third quarter from a year ago, thanks to record high revenue amid an improved semiconductor market.

Revenue for the period rose by 14 percent quarter-on-quarter to US$2.17 billion () - more than US$2 billion in a single quarter for the first time - mainly due to a change in product mix, China's biggest chipmaker said,.

Chip capacity utilization rose 5.2 percentage points to 90.4 percent, and wafer shipments advanced 38.1 percent year-on-year.

Meanwhile, 12-inch monthly capacity increased by 21,000 wafers, which further improved the product mix and increased the blended ASP.

SMIC expects the fourth quarter's revenue to reflect a quarter-on-quarter growth up to 2 percent, with gross margins ranging from 18 to 20 percent.

Shares of SMIC rose 5.02 percent to HK$28.25 ahead of the results announced yesterday.

Meanwhile, chipmaker, Hua Hong Semiconductor (1347) saw its net profit for the third quarter surge over twofold year-on-year to US$44.82 million, driven by the overall recovery of the semiconductor market.

Revenue saw a year-on-year decline of 7.4 percent to US$526 million due to the decreased average selling price, while partially offset by higher wafer shipments. Gross margin decreased 3.9 points to 12.2 percent.

The company expects fourth-quarter sales revenue in the range of US$530 million to US$540 million, with gross margins between 11 to 13 percent.

The company also said in a separate filing that Huang Dengshan, nominated by China Integrated Circuit Industry Investment Fund, has been appointed as a class I director, non-executive director and a member of the nomination committee of the board with effect from November 7.

Shares of Hua Hong rose 3.34 percent to HK$23.20 apiece ahead of yesterday's results.