On the evening of 15th, SMIC H shares announced that it would raise its income and gross profit margin guidelines for the third quarter of 2020. The month on month growth guidelines for the three months ended September 30, 2020 were raised from the original 1% to 3% to 14% to 16%, and the gross profit rate guideline was increased from 19% to 21% to 23% to 25%. Previously, SMIC announced on August 6 that the company’s revenue in the second quarter reached $938 million, an increase of 3.7% on a month on month basis and an increase of 18.7% on a year-on-year basis; the net profit attributable to shareholders of the company was $138 million, a record high in a single quarter. In addition, the gross profit in the second quarter was about 249 million US dollars, with a month on month increase of 6.4% and a year-on-year increase of 64.5%. The gross profit margin of Q1 and Q2 were 26.5% and 25.8% respectively. < / P > < p > SMIC attributed the increase in revenue to changes in product mix and growth in other business income, which may be mainly attributed to the increase in the price of 8-inch wafers. < p > < p > in the second quarter performance teleconference on August 7, SMIC joint CEO Zhao Haijun said, “after the relevant application of 5g, the demand gap of 0.18 μ m and 0.15 μ m two mature processes is particularly large, and customers have high profits in the market, so the average price of 8-inch wafer will rise.” “To ease the shortage of production capacity, the company will increase its 8-inch monthly production capacity by 30000 pieces by the end of this year, and its 12 inch monthly production capacity will increase by 20000 pieces,” he reiterated < p > < p > Dongfang securities recently published a research report that 8-inch wafer benefited from the rapid growth of application demand for Image Sensor CIS, power management chip PMIC, fingerprint identification chip, Bluetooth chip, special memory chip, etc., 8-inch factory orders are booming, and SMIC’s international capacity is full. In terms of 12 inch wafer, the company continues to expand mobile phone, automobile and consumer electronics applications, and the business is progressing smoothly. On the whole, SMIC’s capacity utilization rate has been continuously improved since 2019q1. In the past three quarters, the company’s overall capacity has been close to full load, and the capacity utilization rate has reached more than 98%. < p > < p > according to the data, SMIC has started to expand its production capacity on a large scale: in terms of 8-inch wafer, it is expected to increase the production capacity of 30000 pieces / month in Tianjin, Shanghai and Shenzhen; for 12 inch wafer, it is expected to increase the production capacity of 20000 pieces / month (calculated by 12 inch chip) within the year, and the new capacity will contribute to the revenue in the second half of the year. At the same time, SMIC northern fabb3, SMIC southern fabsn1 and proposed SMIC southern fabsn2 will also contribute new capacity increment for the company to meet more customer demands. Recently, the company has also signed a cooperation framework agreement with the Beijing Development Zone Management Committee to establish a joint venture focusing on wafer foundry projects of 28nm and above. In the first phase, the company plans to build a wafer production capacity of 100000 pieces / month (in terms of 12 inch chips). < / P > < p > it is worth noting that recently, there has been a lot of good news related to SMIC international advanced process products. According to Zhuhai Special Zone Daily reported on the 11th, SMIC has completed the world’s first chip assembly and test based on SMIC international FinFET n + 1 advanced technology. “N + 1” is the code name of SMIC for its second generation advanced process. Compared with the existing 14nm process, the performance is improved by 20%, the power consumption is reduced by 57%, the logic area is reduced by 63%, and the SOC area is reduced by 55%. Because the OEM process is very close to the 7Nm process, it can be produced without using the extreme ultraviolet lithography machine produced by ASML company, also known as “domestic version” 7Nm chip technology. In the research report, Dongfang Securities said that SMIC’s N + 1 process is currently in the customer product certification period, and it is expected to see a small amount of output in the fourth quarter of 2020, and the N + 2 process has also been put on the agenda. In addition, on the evening of the 14th, ASMC CFO Roger dasse talked about the situation of China’s customers such as SMIC international at the financial report meeting. Roger dasse said that after understanding the relevant laws of the United States, ASMC believed that DUV lithography system could be exported to Chinese customers without applying for export license. Global Tech