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The logo hangs on the building of the Peking branch of the semiconductor international corporation (Smic) on December 4, 2020 in Beijing, China.
VCG | Visual China Group | Gets the image
Shares International Semicoler Production CorporationThe largest china in China, on Friday fell by almost 7% Profit in the first quarter missed estimates.
Following the trading on Thursday, the company reported profit in the first quarter of $ 2.24 billion, which is 28% more than a year earlier. Meanwhile, the income related to shareholders increased by 162% a year to $ 188 million.
However, both figures missed an average LSEG estimate of $ 2.34 billion and $ 225.1 million of net income as well own company forecasts.
During the call for the income on Friday the Smic representative stated that the profits missed the original recommendations from -was “Floating Production”, which sent mixed average sales prices. It is expected that this influence will spread to the second quarter, they added.
In the current quarter, the chips were predicted by a profit, which fell 4% to 6% consistently. It is expected that gross profitability will also fall within 18% to 20%, compared to 22.5% in the first quarter.
However, in the first quarter, Smic plates increased by 15% compared to the previous quarter and approximately 28% compared to last year.
The Smic call call attributed that the growth of customer sending in geopolitics and the increase in demand caused by government policies such as internal programs and subsidies for consumption.
In another positive sign for the company, its use in the first quarter-procedure from the total available production capacity used at any time or 89.6%, which is 4.1% of the quarter.
“Almost 90% of Smic use reflects strong domestic demand for semiconductors, probably caused by the production of smartphones and consumer electronics,” said Ray van, a semiconductor analyst based in Washington, added that demand was also intended in strong company revenue growth.
Meanwhile, the company stated that it called for income that it is “currently in the important period of construction, deployment and the market share.”
However, the cost of research and development in the first quarter of SMIC decreased to $ 148.9 million, which is compared to $ 217 million in the previous quarter.
Against the backdrop of increased demand, SMIC will be crucial for increasing its power, said CNBC Sim Chen, the chief analyst of semiconductor production in Informa Tech.
Smic brings most of its older generation semiconductors, often called “mature nodes” or “hereditary” chips, which are commonly found in household electronics and industrial equipment.
The state -owned chip manufacturer is crucial for Beijing’s ambitions to build a self -sufficient network of semiconductors with government Pinging billions in such efforts. More than 84% of profits in the first quarter were received from customers in China.
“Localization of the transformation of the supply chain has been strengthened, and more demand for production has changed at the domestic level,” the representative said on Friday.
However, the crushed analysts say The ability of the chip is the manufacturer To increase the power in advance, the chips are used in supplements that require higher computing and efficiency levels at higher crops – limited.
This is due to the control of exports led by the United States, which prevent it from accessing some of the world’s most modern equipment for the preparation of chips from the Netherlands ASML.
However, the product manufacturer makes some breakthroughs. Reportedly advanced chips made by SMIC Mate 60 Pro smartphone and some Ah -Processors.
The actions in Hong Kong Smik received more than 32.23%.
