China’s top chip foundry Semiconductor Manufacturing International Corp (SMIC), which has been on a US trade blacklist for more than two years, said it posted record revenue and profits for 2022, thanks to strong demand for legacy chips in the world’s second-largest economy, reports the South China Morning Post. In 2022, the second full year the Shanghai-based company was restricted from importing key chip-making tools, SMIC saw its revenue grow 33.6% year on year to $7.2 billion, while net profits attributable to shareholders reached $1.8 billion, both record amounts, according to its annual report released on Tuesday.
Its gross profit margin, a key indicator of profitability, reached 38% last year, up from 30.8% in 2021. Despite the growth, SMIC’s gross margins are still lower than industry leaders like Taiwan Semiconductor Manufacturing Co, which had a gross margin of more than 60% in the December quarter.
SMIC said it derived 74% of its total 2022 revenue from China, up four percentage points compared to 2021, adding that the production capacity of its domestic fabs is still short of market demand, while its technology level lags behind global peers.
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