The largest wafer foundry in China released its 2022 Q1 quarterly financial report last night, achieving operating income of 11.854 billion yuan, a year-on-year increase of 62.6%; net profit of 2.843 billion yuan, a year-on-year increase of 175.5%. Regarding the surge in performance, SMIC said that thanks to the company’s planning and deployment in the past six months, the company has further strengthened close cooperation with global customers and suppliers around the market gap, carried out early capacity allocation optimization and adjustment, and promoted production capacity in an orderly manner. building. SMIC’s gross profit margin reached 40.7% this quarter, a significant increase from 35% in the fourth quarter of last year and 22.7% in the first quarter of last year, which also exceeded the guidance. The fab capacity utilization rate is the benchmark for industry prosperity. In the first quarter of this year, SMIC’s capacity utilization rate continued to increase, reaching 100.4%. In this regard, SMIC stated that in the first half of the year, factors such as the epidemic and international local conflicts have led to an intensified structural shortage of semiconductor manufacturing capacity in the short term. As the production capacity is still in short supply, SMIC will also invest heavily in chip expansion this year, of which the capital expenditure in the first quarter is about 5.5 billion yuan. The planned capital expenditure in 2022 is about 32.05 billion yuan, which is mainly used to continue to promote the expansion of the old factory and three new factory projects.
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