SMIC Reports Record 2024 Revenue Amid Declining Net Profit
Chinese semiconductor foundry SMIC announced its 2024 fiscal year financial results, revealing a record-high annual revenue of RMB 57.8 billion ($8.07 billion), representing a 27.7% year-on-year increase. Despite this top-line growth, the company's net profit attributable to shareholders decreased by 23.3% to RMB 3.7 billion ($520 million). The report highlighted a gross margin of 18.6% and a capacity utilization rate of 85.6%. Operational metrics showed a significant 36.7% rise in wafer sales volume, reaching 8.021 million units (8-inch equivalent), although the average selling price dropped to RMB 6,639. SMIC management attributed the revenue growth to a broader recovery in the global semiconductor industry, fueled by demand for intelligent and high-performance computing. While noting that inventory adjustments in the automotive chip sector are slowing, the company cautioned investors about intensifying competition and external uncertainties expected in 2025. This mixed financial performance underscores the complex dynamics facing major chip manufacturers as they navigate market recovery alongside pricing pressures and geopolitical challenges.
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SMIC Reports Record 2024 Revenue Amid Declining Net Profit
Chinese semiconductor foundry SMIC announced its 2024 fiscal year financial results, revealing a record-high annual revenue of RMB 57.8 billion ($8.07 billion), representing a 27.7% year-on-year increase. Despite this top-line growth, the company's net profit attributable to shareholders decreased by 23.3% to RMB 3.7 billion ($520 million). The report highlighted a gross margin of 18.6% and a capacity utilization rate of 85.6%. Operational metrics showed a significant 36.7% rise in wafer sales volume, reaching 8.021 million units (8-inch equivalent), although the average selling price dropped to RMB 6,639. SMIC management attributed the revenue growth to a broader recovery in the global semiconductor industry, fueled by demand for intelligent and high-performance computing. While noting that inventory adjustments in the automotive chip sector are slowing, the company cautioned investors about intensifying competition and external uncertainties expected in 2025. This mixed financial performance underscores the complex dynamics facing major chip manufacturers as they navigate market recovery alongside pricing pressures and geopolitical challenges.
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