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SMIC posts loss, but sees uptick ahead
Dylan McGrath
2/9/2012 12:22 AM EST
SAN FRANCISCO—Chinese chip foundry Semiconductor Manufacturing International Corp. (SMIC) Wednesday (Feb. 8) reported a loss for the fourth quarter in 2011 after turning a profit in the same period of 2010.
SMIC (Shanghai) reported fourth quarter sales of $289.6 million, down 6 percent compared to the third quarter and down 29 percent compared to the fourth quarter of 2010. The company posted a loss of $165.6 million, compared to a loss of $88.1 million in the third quarter and a net income of $68.7 million in the fourth quarter of 2010.
SMIC said it expects sales to increase 7 to 9 percent sequentially in the first quarter to between $309.9 million and $315.7 million.
"Our China revenue continues to grow along with China's semiconductor market," said Tzu-Yin Chiu, SMIC's CEO, in a statement. Chiu said SMIC's sales to Chinese fabless companies grew 16 percent in 201 compared to 2010, accounting for more than 30 percent of the company's sales for the year.
Chiu said SMIC is encouraged by its progress with 45/40-nm technology, which accounted for 0.3 percent of the company's sales in the fourth quarter. "With increased customer confidence and a recovering economy, we are seeing some rebound in the first quarter of this year, and we are targeting continued growth in the second quarter," Chiu said.
SMIC said it plans to allocate about $430 million for capital expenditures in 2012.
SMIC said its capacity utilization rate improved to 65.6 percent in the fourth quarter, up from 61 percent in the third quarter but down from 92.1 percent in the fourth quarter of 2010.
SMIC (Shanghai) reported fourth quarter sales of $289.6 million, down 6 percent compared to the third quarter and down 29 percent compared to the fourth quarter of 2010. The company posted a loss of $165.6 million, compared to a loss of $88.1 million in the third quarter and a net income of $68.7 million in the fourth quarter of 2010.
SMIC said it expects sales to increase 7 to 9 percent sequentially in the first quarter to between $309.9 million and $315.7 million.
"Our China revenue continues to grow along with China's semiconductor market," said Tzu-Yin Chiu, SMIC's CEO, in a statement. Chiu said SMIC's sales to Chinese fabless companies grew 16 percent in 201 compared to 2010, accounting for more than 30 percent of the company's sales for the year.
Chiu said SMIC is encouraged by its progress with 45/40-nm technology, which accounted for 0.3 percent of the company's sales in the fourth quarter. "With increased customer confidence and a recovering economy, we are seeing some rebound in the first quarter of this year, and we are targeting continued growth in the second quarter," Chiu said.
SMIC said it plans to allocate about $430 million for capital expenditures in 2012.
SMIC said its capacity utilization rate improved to 65.6 percent in the fourth quarter, up from 61 percent in the third quarter but down from 92.1 percent in the fourth quarter of 2010.
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