Many of China’s largest chip makers are following through with capacity expansion plans on the back of strong demand facilitating record-high revenues and profits, despite the possibility of further sanctions from the US, reports the South China Morning Post. Semiconductor Manufacturing International Corp (SMIC), China’s largest fab, said its capital expenditure in 2022 will be about $5 billion with most of the funds used for three new fab projects in Beijing, Shenzhen and Shanghai as well as the expansion of existing plants.
The Shanghai-based company’s revenue rose to RMB 35.6 billion in 2021, an increase of 30% year-on-year, while its net profit surged 147% year-on-year in 2021 to a record RMB 10.7 billion, according to its annual report for 2021 released on Wednesday.
Meanwhile, China’s second-biggest chip maker is also expanding its capacity and seeking a secondary listing in Shanghai. Hua Hong Semiconductor’s 2021 revenue increased 70% from a year ago to $1.63 billion, while its net profit surged almost sevenfold to $231 million.