On August 27, SMIC disclosed the interim report that in the first half of the year, the company’s revenue reached 13.161 billion yuan, a record high, with a year-on-year increase of 29.4%; the net profit attributable to the parent company was 1.386 billion yuan, an increase of 329.8%; after deducting the net profit of 542 million yuan, it turned losses into profits on a year-on-year basis, with a loss of 596 million yuan in the same period of last year. In terms of profitability, the comprehensive gross profit rate was 23.5%, with a year-on-year increase of 2.5 percentage points; the comprehensive net interest rate was 9.2%, with a year-on-year increase of 8.2 percentage points. SMIC was incorporated in the Cayman Islands in April 2000. It was founded by founder Zhang Rujing. It was listed on the Hong Kong and New York stock exchanges in 2004, delisted from the New York Stock Exchange in 2019, and landed on the Shanghai Science and technology innovation board on July 15, 2020.
SMIC is one of the leading integrated circuit foundry enterprises in the world. It is also the Chinese mainland’s most advanced technology, largest and most complete and multinational professional foundry enterprise. It mainly provides 0.35 to 14 nanometer multi technology nodes and integrated foundry and supporting services for different process platforms.
SMIC has never been so popular since its establishment. As the most advanced foundry enterprise in mainland China, especially after the US sanctions against hi-tech enterprises in China continuously, it has great responsibilities. The performance of the Chinese mainland stock market also shows one or two. Before Sino US trade frictions, SMIC’s share price was tepid, but since the trade friction, especially after the restrictions on domestic high-tech companies, its share price has soared to HK $44.8/share, a record high, more than twice the beginning of the year. Even after the company’s listing on the science and Technology Innovation Board, the stock price of SMIC fell, but Hong Kong stock basically remained at about HK $25 / share, compared with the previous year Compared with that in 2019 and before, it is also a historical high; although the price of A-share is lower than that at the beginning of listing, it is still around 65 yuan / share. < / P > < p > it is expected that in the future, with the support of the new domestic infrastructure policy and the recent announcement that the domestic chip self-sufficiency rate will reach 70% by 2025, the company still has a lot of imagination. < p > < p > due to the impact of the new crown epidemic and the global economic downturn, China has implemented a new infrastructure policy and vigorously supported the construction of domestic 5g, industrial Internet, artificial intelligence, big data center and other information infrastructure industries, thus driving a large number of demand for corresponding chips and promoting the development of domestic and even global semiconductor related enterprises. Of course, domestic enterprises are more benefited, which is also the domestic related half One of the reasons for the good performance of conductor enterprises in the first half of the year will continue in the future. < / P > < p > in terms of quarterly revenue, the company’s revenue has continued to grow in the past one and a half years, from 4.5 billion yuan in 19q1 to 6.6 billion yuan in 20q2. According to the company’s guidelines, 20q3 is expected to achieve a growth rate of 1% – 3% month on month. According to the regional income classification, the company’s incremental income mainly comes from China, with a year-on-year increase of 51.5% according to the mainland accounting standards; the domestic revenue of 20q2 continued to increase, accounting for 66.1%; the revenue of North America achieved zero growth, and the proportion continued to decline. According to the capacity scale and utilization rate, the company’s capacity scale continues to increase, and the current capacity utilization rate is basically full load. Since 19q3, the capacity utilization rate has been above 97%. < p > < p > according to the application classification, communication and consumption markets accounted for the largest proportion, accounting for 46.9% and 36.9% respectively in 20q2, followed by computers, automobile / industry, accounting for 5.9% and 4.3% respectively. < / P > < p > in terms of service classification, although the proportion of income from mask manufacturing, wafer testing and other businesses is small, the proportion continues to expand. In 20q2, the revenue from wafer services accounted for 90.9%, while that from mask manufacturing and wafer testing accounted for 9.1%. < p > < p > according to the classification of technology nodes, the revenue mainly comes from the processes above 28nm, of which 0.15/0.18um, 55 / 65nm and 40 / 45nm processes account for the largest proportion. Since the small-scale mass production of 19q4, the revenue share of advanced process is also expanding. < / P > < p > the company’s current process layout and advanced process progress: the company has a comprehensive layout in the mature process field, and each technical node is basically involved; the R & D and business progress in the field of advanced technology is relatively smooth. At present, the company has realized the R & D and mass production of 28nm HKC + process and 14nm FinFET process, and the second generation FinFET N + 1 technology platform has entered the stage of customer introduction, and the next generation of advanced technology and process are also being developed simultaneously. < / P > < p > in addition, in the semi annual report, the company also gave corresponding prospects for future performance: the company disclosed that although the first half of the year was affected by the epidemic, the semiconductor market demand was strong, and the company expected to achieve a revenue growth of 15% – 19% in 2020. Meanwhile, by the end of the year, the production capacity of 8-inch and 12 inch wafers will be increased by 30000 pieces and 20000 pieces respectively. < / P > < p > the company continues to cooperate with domestic and foreign customers on advanced technology and new projects, and its application has been extended to consumer electronics and media related products, such as artificial intelligence, radio frequency, Internet of things and automobile. < / P > < p > in addition, the demand for mature process application platforms is as strong as ever, such as power chips, camera sensors, radio frequency Internet of things and special storage devices. < / P > < p > in order to meet the needs of mature process platforms and ease the current capacity bottleneck, SMIC will increase the production capacity of 30000 8-inch wafers and 20000 12 inch wafers per month by the end of this year. At the same time, SMIC will continue to promote the R & D progress to seize the market opportunities of mature and advanced nodes. < / P > < p > 1) the company’s production equipment contains a large number of American equipment, and raw materials come from abroad. If the US side sanctions, the company will have a great impact. Of course, this situation is not limited to SMIC international, but also exists in most other domestic semiconductor enterprises. Frankly speaking, Huawei’s first sanction by the United States is a great benefit to the company and most domestic semiconductor companies, although it will have a certain negative impact on Huawei itself. The return of global communication giants to China not only brings huge market increment, but also brings the feedback of advanced technology, which promotes the technological upgrading of domestic semiconductor enterprises. At the 2019 Beijing Microelectronics International Symposium and IC World Conference, SMIC co CEO said that the return of Huawei, the ecological leader, is driving China’s semiconductor industry. However, on May 15 this year, the U.S. Department of commerce further revised the rules and issued the most severe sanctions against Huawei, requiring that after September 15, all manufacturers in the world, any enterprise using American equipment or technology, should not produce or sell its chips for Huawei without the approval of the US government, which has caused heavy losses to domestic and even global enterprises Great influence. < / P > < p > most domestic semiconductor companies have been covered with a layer of haze in the future. Because many enterprises use a large number of American production equipment, including SMIC, after September 15, without the permission of the U.S. government, it will not be able to contract for Huawei. Of course, the coexistence of danger and opportunity will benefit domestic manufacturers of equipment and raw materials to a certain extent. However, their pressure will also increase. The market and even the country are looking forward to the rapid improvement of their technology, which will take time. < p > < p > after pulling back to SMIC itself, Huawei made strategic adjustments after being sanctioned for the first time, and began to transfer some order strategies to China. SMIC, as the “shoulderer” of the semiconductor industry in mainland China, naturally benefited (Netcom Huawei sent technical personnel to SMIC international to assist in the rapid production of new products in its advanced process. Of course, this still needs to be done Confirmed by the company). < / P > < p > from the company’s financial report, we can find that the company’s customers have been officially introduced into the company in 19q4 to produce 14nm advanced process chips. Its largest customer is Huawei, which mainly produces 14nm mobile phone chips for Huawei. In 20q1 and Q2, although the company did not specifically split the performance of 14nm and 28nm, the proportion of both increased steadily, from 6% of 19q4 to 7.8% of 20q1 and 9.1% of Q2. It is very likely that the company will make full use of its power to OEM chips for Huawei before September 15, and TSMC should have similar phenomenon. After September 15, the company will apply to the U.S. government for OEM chips for Huawei, and its future performance is expected to be affected. < / P > < p > the company estimates that the annual capital expenditure in 2020 will be US $6.7 billion, which is significantly higher than US $1.813 billion and US $2.032 billion in 2018 and 2019. With the conversion of related projects under construction to fixed assets in the future, the gross profit margin of the company will be affected. In the 20q2 performance guidelines, the company said that in the future, according to the Hong Kong stock accounting standards, the gross profit margin of Q3 company will be between 19% and 21%, significantly lower than 25.8% and 26.5% of Q1 and Q2. Government subsidies received by the company: in the first half of 2020, the company received 1.166 billion yuan of government subsidies, compared with 967 million yuan in the same period of last year. In addition, the balance of government subsidies in the company’s deferred income is still 6.4 billion yuan. < / P > < p > in addition to government subsidies, the company has also benefited from a variety of other preferential measures, such as taxes and approval procedures, especially recently. For example, on August 4, the State Council issued a preferential tax policy for the integrated circuit and software industry, exempting or exempting the relevant enterprise income tax, which is not limited to the company. In addition, the company only took 19 days from acceptance to the meeting and 45 days to the formal listing, which set a record in the shortest time, and successfully raised 53.2 billion yuan of capital, which has become the largest scale of a shares in recent ten years IPO。
has the final say that this topic has been discussed for a long time. Not only SMIC, but also many government high-tech companies in China have been supported by some government. I really can’t understand why many people opposed the support. What we call the market is the final say. Let’s briefly review the history of the development of the semi conductor:
, the development of the semiconductor industry in the United States is also a major force in the army and the government. Japan and South Korea, not to mention Japan and South Korea, have supported the development of semiconductor industry with the support of the whole country. Recently, many countries still support their enterprises in various ways. India’s strong imitation policy in the field of medicine has not seen other western countries talk about it with great fanfare; Toshiba of Japan sold its storage company and excluded Chinese enterprises from bidding under the intervention of the Japanese government; the United States has been dealing with the EU over the Airbus issue It is a potential proof that the European Union has been subsidizing enterprises; when the United States launched a trade war with China, trump publicly threatened Ge to reduce the amount of its subsidies for the manufacturing industry, which shows that the U.S. government is subsidizing GM; and recently, Tesla, a high-tech enterprise, according to good jobs, a US non-profit organization According to a first report, Tesla received up to $3.5 billion in government subsidies from 2007 to 2018, and Google’s parent company alphabet and apple both received hundreds of millions of dollars in government subsidies during the same period. There are ASML lithography because the United States blocked the delay in delivery, and so on, countless. < p > < p > as a latecomer country, China can’t survive in asset intensive and technology intensive industries without subsidies, and the industry has no chance. In addition, if there are no domestic semiconductor companies, they will not be able to fight back in the face of the US’s strangulation and blockade of China’s high-tech enterprises. Maybe Huawei will fall down in the first wave of sanctions. I still remember what it was like