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CNBC AI News reported on August 8th that China’s leading semiconductor foundry, SMIC (Semiconductor Manufacturing International Corporation), released its Q2 earnings, posting revenue of $2.209 billion, a 16.2% year-over-year increase, but a slight 1.7% decrease compared to the previous quarter.
Net profit for Q2 was $132.5 million, down 19% year-over-year. However, capacity utilization rate reached 92.5%, a 2.9 percentage point increase from Q1’s 89.6%.
The results present a mixed picture, with one notable development: a recent uptick in the average selling price (ASP) of wafers. Co-CEO Zhao Haijun addressed this during the earnings call, emphasizing that this wasn’t the result of proactive price hikes.
According to Zhao, the primary driver of the ASP increase is the high capacity utilization rate, particularly for 12-inch wafers, where discounts are no longer being offered. This, in turn, has naturally pushed up the average selling price.
He stated that SMIC has historically not been a first-mover in initiating price increases within the industry. However, if comparable competitors implement price hikes, the company will consider following suit.
Interestingly, during the Q1 earnings call, Zhao Haijun also addressed concerns about price wars in the market. He reiterated that SMIC would not proactively engage in price reductions. This consistent strategy suggests that SMIC is not competing on price, maintaining its own pace rather than aggressively raising or lowering prices.
Analyzing SMIC’s ASP figures, with Q2 revenue at $2.209 billion and approximately 2.39 million 8-inch equivalent wafers shipped, the estimated ASP is around $924 per wafer (approximately 6600 yuan/wafer). This figure remains significantly lower than that of TSMC (Taiwan Semiconductor Manufacturing Company), whose main revenue streams are derived from advanced nodes of 5nm and below, commanding wafer prices ranging from $15,000 to $30,000. This highlights the significant profitability associated with leading-edge process technologies.
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Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/6720.html
