Semiconductor Manufacturing International Corporation's (SMI) consolidated results of operations for the three months ended December 31, 2005 show that sales increased to US$333.1 million, up 7.5% from US$310.0 million in the third quarter of 2005.

The company also reported an increase in capacity to 152,219 8-inch equivalent wafers per month and a utilization rate of 93% in the fourth quarter of 2005.

Gross margins were 12.9% in the fourth quarter of 2005 compared to 8.2% in the third quarter of 2005. Net loss decreased toUS$15.0 million in the fourth quarter of 2005 compared to a net loss of US$26.1 million in the third quarter of 2005.

Compared to the third quarter of 2005, wafer shipments increased 5.8% to 376,227 8-inch wafers in the fourth quarter of 2005.

"We continue to receive strong orders from our broad customer base across leading edge and mainstream technology nodes," said Dr. Richard Chang, President and Chief Executive Officer of SMIC. "As a result, our revenues and the average selling price of our wafers increased during the fourth quarter."

The company continued to generate strong cash flows from operations. It generated US$174 million in cash from its operations during the fourth quarter and US$648 million in 2005.

With almost US$600 million of available cash on hand and over US$600 million in available credit facilities, including the recently completed $105 million loan facility guaranteed by Atradius Dutch State Business N.V. of

Amsterdam, the company says it will continue to expand its capacity at existing sites.

The 2006 capital expenditure budget will be approximatelyUS$1.1 billion, which will be scalable depending on market conditions.


Please enter your comment!
Please enter your name here