SMIC revenue surges 20% in first-quarter lifted by demand in China

SMIC, China’s largest contract chipmaker, said its revenue rose 19.7 percent to $1.75 billion during January-March 2024.
SMIC sales Q1 2024
SMIC has generated 81.6 percent of its sales from China, 14.9 percent from EuroAsia and 3.5 percent from America. This compares with 80.8 percent sales from China, 15.7 percent from EuroAsia and 3.5 percent from America in Q4 2023.

SMIC (Semiconductor Manufacturing International Corporation) had generated sales revenue of $1,678 million in Q4 2023, and $1,462 million in Q1 2023. SMIC supports industries such as Industrial and Automotive, Connectivity and IoT, Consumer Electronics Computer and Tablet, and Smartphone.

SMIC said 8-inch equivalent wafer shipment increased by 7 percent sequentially to 1,795 thousand; and utilization rate increased by 4 percentage points sequentially to 80.8 percent.

“Our global customers are more willing to build up inventory in the first quarter 2024. Demand from some is expected to continue in the current quarter,” SMIC said in its earnings report.

Global semiconductor sales grew 15 percent to $137.7 billion during the first quarter of 2024, the Semiconductor Industry Association said. Semiconductor sales in China experienced an increase of 27.4 percent.

SMIC’s capital expenditure was $2.2 billion, compared to $2.34 billion for the first quarter of last year.

In the second-quarter, SMIC expects revenue to increase by 5-7 percent quarter on quarter with gross margin of 9-11 percent.