SMIC reports drop in revenue and profit in Q1

Semiconductor Manufacturing International Corporation (SMIC) has reported revenue of $1.462 billion in 1Q23, compared to $1.621 billion in 4Q22, and $1.841 billion in 1Q22.
SMIC revenue Q1 2023

SMIC’s gross profit was $304.7 million in 1Q23, compared to $518.7 million in 4Q22, and $750.3 million in 1Q22.  Gross margin was 20.8 percent in 1Q23, compared to 32.0 percent in 4Q22 and 40.7 percent in 1Q22.

SMIC has generated 23.5 percent of its revenue from Smartphone, 16.6 percent from IoT, 26.7 percent from Consumer Electronics and 33.2 percent from Others. SMIC’s revenue from Smartphone business showed negative growth.

SMIC has generated 75.5 percent of the revenue from China, 19.6 percent from America and 4.9 percent from Eurasia. All its markets showed negative growth.

Currently, SMIC Shenzhen has entered mass production; SMIC Jingcheng is expected to enter mass production in the second half of the year; SMIC Oriental is expected to start the mini-line by the end of this year; SMIC Xiqing is still under the construction.

SMIC said its Capex for 2023 will be in line with the Capex in 2022. SMIC is aiming for 5-7 percent quarter-on-quarter growth in Q2 2023. SMIC said its revenue is expected to decline by low-teens percentage in 2023, and the gross margin is expected to be around 20 percent.