SMIC posts record sales

SMIC posts record sales

SAN FRANCISCO—Chinese chip foundry Semiconductor Manufacturing International Corp. (SMIC) Monday (Nov. 5) reported record sales that exceeded analysts' expectations for the third quarter as the firm continues to benefit from rapid growth of the communications and consumer sectors in China.

SMIC (Shanghai) reported record third quarter sales of $461.2 million, up 9 percent from the previous quarter and up 50 percent compared to the third quarter of 2011. The foundry reported a net income of $12.2 million, up 68 percent from the previous quarter and up compared to a net loss of $87.9 million in the year-ago quarter.

SMIC's third quarter sales beat consensus analysts' expectations of about $440 million, according to Yahoo Finance.

SMIC's record sales announcement came just days after Taiwan Semiconductor Manufacturing Co. Ltd., the largest foundry vendor, also reported record third quarter sales. It was also the second consecutive quarter of record sales for SMIC, which also reported record results for the second quarter.

SMIC said it expects sales for the fourth quarter to be between $461.2 million and $470.4 million, flat to up 2 percent compared with the third quarter.

Tzu-Yin Chiu, SMIC's CEO, said through a statement that SMIC expects to achieve record sales in 2012. "In the past two quarters, we successfully achieved our short-term goal: to fully utilize our existing capacity and improve efficiency," Chiu said. "Our medium-term goal of technology differentiation is on track. We've already seen the fruit of some initial results."

Chiu said SMIC is also on track to achieve its long-term goal to continue advanced technology development to serve expanding demand from the fast-growing China market while deepening its relationships with leading customers.

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TAG:SMIC Chinese Chip Foundry