CNBC AI News, August 8th – China’s leading semiconductor foundries, SMIC and Hua Hong Semiconductor, have both reported robust second-quarter earnings, with sales revenue experiencing significant double-digit growth.
However, even more compelling than the revenue surge is the marked increase in capacity utilization rates at both foundries, signaling near full production.
Data reveals that SMIC achieved second-quarter sales revenue of $2.209 billion, a 16.2% year-over-year increase. The company’s capacity utilization rate reached an impressive 92.5%, compared to 85.2% in the same period last year.
Management noted that there were no price increases in the second quarter; instead, the higher average selling price stemmed from operating at near full capacity, eliminating discounts, particularly on 12-inch wafers. “We are never the first in the industry to raise prices,” a company spokesperson stated. “However, we will follow suit if comparable peers increase their prices.”
Hua Hong Semiconductor’s earnings report echoed this positive trend, with second-quarter sales revenue reaching $5.661 billion, reflecting an 18.3% year-over-year increase and a 4.6% sequential growth.
In terms of capacity utilization, Hua Hong Semiconductor’s monthly capacity at the end of the second quarter was approximately 447,000 8-inch equivalent wafers. The overall capacity utilization rate stood at 108.3%, surpassing the 102.7% recorded in the first quarter and the 97.9% from the same period last year, achieving a multi-quarter high.
Looking ahead, SMIC projects third-quarter revenue growth of 5% to 7% compared to the previous quarter, with a gross profit margin ranging from 18% to 20%. Hua Hong anticipates third-quarter sales revenue of approximately $620 million to $640 million, with a gross profit margin of approximately 10% to 12%.
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