Yesterday, SMIC and Hua Hong Semiconductor announced Q2 performance reports

On August 10, SMIC and Huahong Half Conductor has released its second quarter performance report for 2023 , taking stock of the company's performance from April to June.

SMIC's performance report shows that sales revenue in the second quarter of 2023 was US$1.560 billion , an increase of 6.7% compared with US$1.462 billion in the first quarter of 2023. The increase in sales revenue was mainly due to the increase in wafer sales in the second quarter of 2023. Caused by. The report shows that in the second quarter of 2023, SMIC's gross profit was US$317 million, with a gross profit margin of 20.3% , a decrease of 0.5 percentage points from the first quarter.

Source: SMIC official website

From the perspective of revenue analysis, 90.5% of revenue in the second quarter came from wafers . Wafer revenue analysis shows that 8-inch wafer revenue accounts for 25.3%, and 12-inch wafer revenue accounts for 74.7%. By application, SMIC's wafer revenue can be divided into four categories: smartphones, consumer electronics, Internet of Things and other categories, accounting for 26.8%, 26.5%, 11.9% and 34.8% of wafer revenue respectively.

Source: SMIC official website

In terms of production capacity, SMIC's monthly production capacity increased from 732,250 8-inch equivalent wafers in the first quarter of 2023 to 754,250 8-inch equivalent wafers in the second quarter of 2023. In the second quarter of 2023, SMIC sold 1,403,121 wafers, with a capacity utilization rate of 78.3% , an increase of 10.2 percentage points from the first quarter .

Regarding SMIC's second-quarter performance, its management commented that in the second quarter of 2023, the company's sales revenue increased by 6.7% quarter-on-quarter to US$1.56 billion, and its gross profit margin dropped by 0.5 percentage points to 20.3%. 12-inch production capacity demand is relatively full, while 8-inch customer demand is weak. The capacity utilization rate is lower than 12-inch, but still better than the industry average. In the third quarter, sales revenue is expected to increase by 3% to 5% quarter-on-quarter, with gross profit margins between 18% and 20%. Shipments are expected to continue to rise in the third quarter, and at the same time, depreciation will also continue to increase. The company's sales revenue in the second half of the year is expected to be better than that in the first half.

Source: Huahong Group official website

Hua Hong Semiconductor also announced its second-quarter results yesterday. Its report showed that sales revenue in the second quarter of 2023 reached US$631.4 million , which was unchanged from the previous quarter and increased by 1.7% year-on-year. In the second quarter, Hua Hong Semiconductor's gross profit margin was 27.7% , a year-on-year decrease of 5.9 percentage points, mainly due to a decrease in average selling prices, and an increase in depreciation and power costs. It decreased 4.4 percentage points from the previous quarter, mainly due to a decrease in average selling prices.

Source: Huahong Group official website

In the sales revenue analysis, 95.2% of Hua Hong Semiconductor's sales revenue this quarter came from direct sales of semiconductor wafers . By wafer size, sales revenue from 8-inch wafers and 12-inch wafers in this quarter were US$361.2 million and US$270.1 million respectively, accounting for 57.2% and 42.8% respectively. In terms of terminal market distribution, Hua Hong Semiconductor's terminal markets are mainly consumer electronics, industry and automobiles, communications and computers, with revenue accounting for 55.1%, 30.9%, 10.8% and 3.2% respectively.

In terms of production capacity, Hua Hong Semiconductor had a monthly production capacity of 347,000 8-inch equivalent wafers at the end of this quarter, with an overall capacity utilization rate of 102.7% .

Regarding the second quarter results of 2023, Tang Junjun, President of Hua Hong Semiconductor, commented: "As of the end of the second quarter, the company's 8-inch equivalent monthly production capacity has increased to 347,000 pieces. Thanks to the company's technical level and diversified characteristic process platforms, Due to the advantages of business scale, the company's four production lines remain operating at full capacity. Moreover, on August 7, 2023, Huahong Semiconductor issued A shares for the first time and was listed on the Science and Technology Innovation Board, raising funds of more than 20 billion yuan, reflecting the broad investment. People’s recognition and support for the company will play a strong role in promoting the company’s subsequent accelerated growth. ”