Semiconductor Manufacturing International Corp (SMIC, 中芯國際), China’s biggest chipmaker, posted its 11th straight quarterly loss after charging US$299.7 million to cover a litigation settlement with rival Taiwan Semiconductor Manufacturing Co (TSMC, 台積電).
The net loss widened to US$482.3 million, or US$0.02 a share, from US$139.5 million, or US$0.01, a year earlier, the Shanghai-based company said in a statement to Hong Kong’s stock exchange on Tuesday.
Fourth quarter sales rose 22 percent to US$333.1 million from a year earlier and were 3 percent higher than in the previous three months, the chipmaker said.
SMIC follows rivals including TSMC in reporting higher revenue as global chip sales recover on rising demand for mobile phones and personal computers. The Chinese company, whose shares have gained 66 percent since David Wang (王寧國) replaced founder Richard Chang (張汝京) as chief executive officer in November, said yesterday it was in talks to sell a stake to a prospective investor.
“2010 looks to be a good year for the semiconductor industry,” Wang said in the earnings statement. “We believe it will also be an important step on our journey toward sustained profitability.”
Revenue in the current quarter is expected to range from flat to a 2 percent increase compared with the previous three months, the company forecast in the statement.
Gross profit rose to US$35.3 million in the fourth quarter from US$2.7 million in the previous three months and compared with a loss of US$74.6 million a year earlier, the statement said.
Shipments of 8-inch wafers totaled 436,816 units in the fourth quarter, 35 percent more than a year earlier and 1.6 percent higher than the previous three months.
A total fourth-quarter charge of US$438.8 million included US$299.7 million related to the settlement of a trade-secrets lawsuit with TSMC, the world’s largest custom-chipmaker.
The company also made a US$139.1 million asset-impairment charge.
SMIC shares fell 6 percent to close at HK$0.63 (US$0.08) in Hong Kong trading yesterday.
The stock has risen 66 percent since Nov. 10, when Wang was appointed as CEO, compared with an 11 percent decline in the territory’s benchmark Hang Seng Index.
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