①The company's second-quarter revenue and net profit exceeded market expectations, with a 18% increase in shipments month-on-month. ②Taiwan Semiconductor, Samsung and others have also given positive revenue expectations in recent days. ③Wafer foundry can accurately reflect the changing trend of the semiconductor industry's prosperity.
On August 8th, after market close, Semiconductor Manufacturing International Corporation (SMIC) disclosed its second-quarter financial report.
In the second quarter, the company achieved revenue of 1.9 billion US dollars, an 8.6% increase month-on-month and a 21.8% increase year-on-year. The market estimate was 1.84 billion U.S. dollars. Net profit was 164.6 million U.S. dollars, a year-on-year decrease of 59% and a month-on-month increase of 129.2%, more than double the market estimation of 76.3 million U.S. dollars. During the same period, gross profit margin was 13.9%, 13.7% in the first quarter of 2024, and 20.3% in the second quarter of 2023.
In the second quarter, the company achieved revenue of 1.9 billion US dollars, an 8.6% increase month-on-month and a 21.8% increase year-on-year. The market estimate was 1.84 billion U.S. dollars. Net profit was 164.6 million U.S. dollars, a year-on-year decrease of 59% and a month-on-month increase of 129.2%, more than double the market estimation of 76.3 million U.S. dollars. During the same period, gross profit margin was 13.9%, 13.7% in the first quarter of 2024, and 20.3% in the second quarter of 2023.
In the same period, gross profit margin was 13.9%, 13.7% in the first quarter of 2024, and 20.3% in the second quarter of 2023.
During the second quarter of this year, the company's monthly production capacity increased to approximately 0.837 million pieces of 8-inch equivalent wafers (0.8145 million pieces in the first quarter). During the same period, more than 2.11 million pieces of 8-inch equivalent wafers were shipped, an increase of 18% month-on-month, and the average sales price decreased by 8% due to changes in product mix.
The capital expenditure for the second quarter of 2024 was 2.251 billion U.S. dollars, and the expenditure for the first quarter of 2024 was 2.235 billion U.S. dollars.
The company expects that revenue in the third quarter will increase by 13% to 15% month-on-month, and the gross profit margin will be between 18% and 20%.
When the Hong Kong stock market opened today, Semiconductor Manufacturing International Corporation (SMIC) soared more than 9% and was valued at HKD 17.24 as of press time.
In fact, not only Semiconductor Manufacturing International Corporation (SMIC), but also many wafer foundry manufacturers have given clear optimistic expectations recently:
Taiwan Semiconductor has recently significantly increased its year-on-year revenue growth rate forecast for 2024 to slightly more than 25%, and increased the lower limit of the capital expenditure budget by 7%.
Samsung stated on July 31st that the wafer foundry in its semiconductor business continues to experience profit growth in the second quarter of 2024. Samsung Wafer foundry mentioned that due to the full-scale production of the second-generation 3nm GAA technology in advanced technologies below 5nm in 2024, the expected revenue growth will exceed the market level.
Mr. Yu Jishi, the general manager of World Advanced, mentioned that under the continuous growth of demand for power management chips, the capacity utilization rate in the third quarter of 2024 is expected to rebound from 62% in the second quarter of 2024 to about 70%.
A report from SEMI shows that in the second quarter of this year, global silicon wafer shipments increased by 7.1% month-on-month to 30.35 million square inches (MSI), a year-on-year decrease of 8.9%.
In the entire semiconductor industry chain, wafer foundry manufacturers are in a core position.
Industrial Securities believes that wafer foundries can accurately reflect changes in the trend of the semiconductor industry's prosperity:(1)Wafer foundries have a relatively high proportion of value-added in the semiconductor industry and can accurately reflect changes in the industry. (2)Wafer foundries are located in the center of the semiconductor industry chain and can accurately reflect the operating conditions of upstream and downstream links. (3)The revenue structure and its changing trend of wafer foundries can accurately reflect the changes in demand in different downstream sub-markets and different process technologies in the semiconductor industry.
Shanghai Securities pointed out in a report on August 5th that with AI driving related industries and the increase in the rate of local semiconductor localization, the global and Chinese wafer foundry industry's capacity utilization rate is gradually recovering and the foundry prices are expected to continue to rise, and the performance of major foundries is expected to recover.
Editor/Lambor