Semiconductor Manufacturing International Corp (SMIC, 中芯), China’s biggest chipmaker, said it aims to post a sales increase of as much as 20 percent this year as it attracts orders for more advanced products.
The firm is expected to post “strong” growth in the second quarter after a sales drop in the three months to March 31, chief executive David Wang (王寧國) said in a conference call yesterday.
Semiconductor Manufacturing yesterday posted its first annual profit since 2004 as the global economic recovery boosted demand for chips used in mobile phones and computers. The Shanghai-based company plans to increase capital spending to US$1 billion this year to upgrade technology and catch up with bigger rivals, including Taiwan Semiconductor Manufacturing Co (台積電).
The company is getting more orders for products used in wireless connectivity devices, such as Wi-Fi and Bluetooth, as well as mobile phones, Wang said.
Fourth-quarter profits were US$68.6 million, compared with a US$617.7 million loss a year earlier, Semiconductor Manufacturing said in a statement released on Thursday. The company recorded an annual profit last year after five straight years of losses, it said.
First-quarter sales would fall between 6 percent and 9 percent from the US$411.8 million posted over the previous three months, the company said.
Semiconductor Manufacturing will seek “alternative funding” as the it seeks to “strengthen its equity structure,” CFO Gary Tseng (曾宗琳) said during the call.
The firm can meet its planned US$1 billion capital spending this year without additional funding, he said.
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