Semiconductor Manufacturing International Corporation, a leading semiconductor foundry in mainland China, has announced its financial report for the third quarter of 2011, stating that it made net loss of CNY88.1 million during the reporting period.

According to the report, the company's sales in the third quarter was CNY306.9 million, a year-on-year decrease of 24% and a decrease of 12.9% compared with the previous quarter. Its net loss per share was CNY0.16.

Qiu Ciyun, chief executive officer of SMIC, said that the company's loss was mainly because of the uncertainty of the global economy and the inventory adjustments within the entire industry. In the future, SMIC will continue to improve its technology development and value differentiation to seek its best market positioning in China.

The statistics provided by SMIC also showed that the company's gross margin decreased from 14.3% in the second quarter to 1.4%, attributing to the low capacity utilization.

In addition, SMIC predicted that its revenue for the fourth quarter of 2011 will decrease by between 5% and 8%; and its operating costs will reach between CNY890,000 and CNY920,000.

SMIC provides integrated circuit foundry and technology services at 0.35-micron to 40-nanometer. Headquartered in Shanghai, SMIC has a 300mm wafer fabrication facility and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, and a 200mm fab under construction in Shenzhen.

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