SMIC raises Q1 guidance on "solid" order book

LONDON – Foundry chip maker Semiconductor Manufacturing International Corp. (Shanghai, China) has raised its guidance for financial performance in the first quarter of 2012.

The company is now predicting a sequential increase in revenue of 14 to 15 percent, up from the original guidance given out with the company's 4Q11 financial results, of a sequential increase of 7 to 9 percent.

"Since the release of our original guidance, we have seen solid order momentum and an improved outlook from our customers across the board, exceeding our earlier expectations," said Gary Tseng, chief financial officer of SMIC, in a statement.

The company is also raising first quarter 2012 gross margin guidance to between 10 and 12 percent, up from the original guidance of between 4 and 7 percent, due to the increased loading of the company's fabs.


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