SMIC Quick
China’s largest semiconductor fab SMIC (981.HK) reported weaker 4Q results (-9.4% q/q, +16.9% y/y) , a result of lower wafer production as Huawei (pvt) reduced orders, a result of US sanctions, although the company expects 1Q results to be up between 7% and 9%. Telling was the decrease in wafer revenue at the 14nm/28nm nodes, which declined from 14.6% in 3Q to 5.0% in 4Q, the drop in smartphone wafer revenue that decreased from 46.1% in 3Q to 36.7% in 4Q, and the drop in revenue share from China from 69.7% in 3Q to 27.7% in 4Q.
SMIC said it will continue to expand production capacity but said production will not be ready until 2H this year, and that the company has seen few customers change their relationship with the company due to the US sanctions. All in it was a better than expected quarter given the Huaqwei situation with reasonable guidance. More to come.
SMIC said it will continue to expand production capacity but said production will not be ready until 2H this year, and that the company has seen few customers change their relationship with the company due to the US sanctions. All in it was a better than expected quarter given the Huaqwei situation with reasonable guidance. More to come.
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