ShanghaiThe.-based chip foundry Semiconductor Manufacturing International Corporation SMIC (Small Microwave Installations) Thursday State-owned company unveiled first quarter financial results. It revealed that it achieved revenue of $1.75billion, which represents a 19.7% growth year-onyear. This SMIC’s result is the first time it has ever surpassed both United Microelectronics Corporation (UMC), GlobalFoundries The two companies combined generate over $1 million in revenue each quarter. TaiwanCompanies based in the United States reported revenues of 1,71 billion dollars and $1.549 trillion respectively for that same period.

The Ranking does not include IDMIntegrated Device ManufacturerBusinesses such as Intel You can also find out more about the following: Samsung.

Why It is important: Amid US Sanctions on Chinese chip development, SMIC’s growth signals China’s It is making efforts to improve its semiconductor manufacturing capabilities at home and reduce its reliance on suppliers from abroad.

Details: Its SMIC’s first quarter results put it second in the world among wafer foundries. However, there is a significant gap between them and TSMC, reported revenue of $18.262 Billion for the same period.

  • In SMIC shipped 1,79 million 8-inch wafers in the first quarter. This is a 7% rise compared to the quarter before. The The capacity utilization rate of the company reached 80.8%. This is up 4% on a quarterly basis.
  • Revenue Distribution across chip-related segments: smartphones (31.2%), computers and tablets (17.5%), consumer electronics (30.9%), IoT (30.9%), and IoT (0.3%).Internet The following are some examples of how to use ThingsWearables and Industrial and Automotive accounted for 7.2%. 
  • Revenue You can also find out more about us on our website. China The EMEA region (EURA) contributes to 81.6%, the US (14.9%), and the rest of the world (EURA).Europe, Middle East. Africa) region accounts for 3.5%.
  • HoweverSMIC’s quarter-end net profit fell by 68.9%, from $71.8 million to $71.8 millions. The According to local media, the semiconductor industry has seen a significant decline in profits at the beginning of 2024 as a result of product price decreases and an inventory backlog. Jiemian. SMIC told Jiemian The decline in net profit was due to a shift in the product mix, depreciation of assets, and lower investment returns.
  • SMIC CEO Zhao Haijun In the first quarter of this year, the company reported that it had received urgent orders for smartphones and computers from its customers. Jiemian Report said Efforts There are plans to process orders for lower priority customers. The production line of 12nm chips is nearing capacity. Zhao said.

Context: Thanks AI is a solution to many of the needs of Nvidia AMD orders TSMC’s advanced packing capacity Chip-on-Wafer-on-Substrate CoWoS and System-on-Integrated-Chip According to the SoIC, all slots for 2024 and 2020 are already booked. an Economic Daily News report from last week. TSMC forecasts a 50% compound annual growth for AI chips in the next five-year period. By AI chip sales are expected to account for over 20% of the company’s revenue by 2028.

Jessie Wu Tech reporter based out of Shanghai. She TechNode is a publication that covers the consumer electronics industry, semiconductors and the gaming sector. Connect with her via e-mail: jessie.wu@technode.com.

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