Design & Reuse

Top China chipmaker SMIC says sales to grow despite US sanctions

Co-CEO Zhao says chip shortage will last at least until end of 2021

asia.nikkei.com, May. 14, 2021 – 

TAIPEI -- China's top contract chipmaker Semiconductor Manufacturing International Co. on Friday said its second-quarter revenue could jump as much as 40% on the year despite continuing uncertainty stemming from U.S. sanctions on the company.

SMIC forecast revenue of between $1.29 billion to $1.31 billion for the April-June period, 19% higher at the top end of guidance from the previous quarter, and 40% higher year-on-year, mainly due to a supply shortage that prompted the company to raise prices of its products.

The chipmaker said its full-year growth momentum would likely exceed its previous forecast in February of "mid-to-high single-digit" revenue growth. However, CFO Gao Yonggang said SMIC would refrain from revising the forecast as its inclusion on a U.S. trade blacklist could still "bring a lot of uncertainties to its procurement of American items and technologies for the second half of 2021."

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