{"id":12972,"date":"2022-02-14T08:46:42","date_gmt":"2022-02-14T08:46:42","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/14\/chinas-top-chipmaker-prioritises-local-sales-amid-sanctions-the-register\/"},"modified":"2022-02-14T08:46:42","modified_gmt":"2022-02-14T08:46:42","slug":"chinas-top-chipmaker-prioritises-local-sales-amid-sanctions-the-register","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/14\/chinas-top-chipmaker-prioritises-local-sales-amid-sanctions-the-register\/","title":{"rendered":"China’s top chipmaker prioritises local sales amid sanctions \u2022 The Register"},"content":{"rendered":"

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Despite record breaking growth and a shift towards supplying chips domestically, execs at China’s top chipmaker \u2013 Semiconductor Manufacturing International Corporation (SMIC) \u2013 believe its production capacity can meet less than ten per cent of domestic semiconductor demand in the Middle Kingdom.<\/p>\n

The company last Friday announced its Q4 and full year results, with quarterly revenue topping $1.58 billion – an increase of 61.1 per cent year-on-year. Annual revenue was $5.4 billion \u2013 an annual increase of 39 per cent. Gross margin hit 35 per cent, which was up 18 points year-on-year. These numbers led a SMIC exec to call the company “the fastest-growing company among the top four pure-play foundries in the world” during its February 11 investors call<\/a>.<\/p>\n

That growth came primarily thanks to the domestic market. Revenue within the Middle Kingdom grew from 56 per cent of the overall amount to 68.3 per cent. North American business slipped from 27.7 of the firm’s total to 19.6 per cent since the prior year.<\/p>\n

“The global shortage of chips and the strong demand for local and indigenous manufacturing brought the company a rare opportunity, while the restrictions of the entity list set many obstacles to the company’s development,” said an SMIC exec on the Q42021 earnings call.<\/p>\n

Co-CEO Zhao Haijun said the company’s customers “are closely supplying to electronics makers and system companies, and they want to have this regional supply chain, and they need production capacity in China.” Haijun then detailed that production capacity is still far from meeting even a tenth of the domestic demand.<\/p>\n

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