SMIC posts banner year, sees Q1 decline

LONDON – Chinese foundry Semiconductor Manufacturing International Corp. achieved its first profitable year in 2010, at both the operational and net income levels, after 5 years of losses, according to its financial results announcement for the fourth quarter.

Full year revenue was $1.55 billion, up 45.2 percent on 2009 but SMIC said it expects revenue to decline between 6 and 9 percent in the first quarter of 2011. The company set its 2011 capital expenditures at "around $1 billion."

SMIC (Shanghai, China) announced a net profit of $68.7 million on revenue of $411.8 million in the fourth quarter of 2011. Revenue was up 0.4 percent on the third quarter figure of $410.1 million and up by 23.6 percent compared to 4Q09. The profit more than doubled from $30.7 million in the third quarter and a loss in the fourth quarter of 2009.

"We are gaining momentum in engaging with key customers on both legacy and advanced technology. All of this shows we have made significant progress compared to 12 months ago. We have confidence that our momentum will continue through 2011 and onwards," said David Wang, president and CEO of SMIC, in a statement.

"In summary, we achieved a profitable 2010, a successful 65-nanometer ramp up thus far, improved operations and overall customer relationships. We continue to focus on sustainable profitability for the long-term. In the near term we continue to ramp up 65/55-nanometer and to bring our 45/40-nanometer into production by the end of 2011. With our planned build up, we target to outgrow the foundry industry in 2011, and we look forward, with our strategy and execution to deliver sustainable value to our shareholders."


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