On May 9th, chip manufacturer SMIC International announced its first-quarter performance as of March 31.
According to the financial report, SMIC International's first-quarter revenue was USD 1.75 billion, up 19.7% year-on-year, exceeding market expectations of USD 1.69 billion. The first-quarter net profit was USD 71.8 million, down 68.9% year-on-year, below market expectations of USD 76.8 million.
SMIC International's first-quarter gross profit was USD 239.7 million, compared to USD 304.7 million in the same period last year. The gross profit margin for the first quarter of 2024 was 13.7%, down from 16.4% in the fourth quarter of 2023 and 20.8% in the first quarter of 2023.
From the revenue sources perspective, the contribution of business from various regions in this quarter remained relatively stable. The revenue contribution from China increased by 0.8% compared to the previous quarter, reaching 81.6%, while the revenue from the U.S. region contracted, and the revenue from the Eurasian region remained stable. Wafer sales revenue remained the main source of revenue for SMIC International, accounting for 93% of total revenue, slightly higher than 92.9% in the previous quarter and 92.1% in the same period last year.
In terms of production capacity, SMIC International's monthly production capacity increased from 806,000 8-inch equivalent wafers in the fourth quarter of 2023 to 815,000 wafers this quarter. The capacity utilization rate increased by 4% to 80.8% compared to 76.8% in the previous quarter, surpassing 68.1% in the same period last year.
Looking ahead to the second quarter and the full year, the management stated:
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In the first quarter of 2024, global customer willingness to stock up has increased slightly, with company sales revenue reaching USD 1.75 billion, a 4.3% increase quarter-on-quarter; gross profit margin was 13.7%, both exceeding guidance. Shipments of 1.79 million 8-inch equivalent wafers increased by 7% quarter-on-quarter; capacity utilization rate was 80.8%, up by four percentage points.
In the second quarter, some customers' early pull-in demand is still ongoing, with the company providing revenue guidance of a 5% to 7% increase quarter-on-quarter; as capacity expands, depreciation increases each quarter, with a gross margin guidance between 9% and 11%.
For the full year, assuming no major changes in the external environment, the company's goal is to achieve a sales revenue growth rate exceeding the industry average.
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SMIC (Semiconductor Manufacturing International Corporation) expects a 5% to 7% quarter-on-quarter revenue growth in the second quarter, with a gross margin ranging from 9% to 11%

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SMIC

SMIC's first-quarter revenue increased by 19.7% year-on-year, with a net profit of $71.8 million, a decrease of 68.9% year-on-year | Financial Report Insights