Hua Hong Semiconductor's sales revenue in 2020 reached a record high of US$961.3 million

According to Jiwei.com, Hua Hong Semiconductor Co., Ltd. (hereinafter referred to as "Hua Hong Semiconductor") released its full-year performance announcement for 2020 ending December 31, 2020 on March 25, stating that the company's sales revenue in 2020 hit a record high of US$961.3 million, an increase of 3.1% over the previous year.

According to the financial report, the company's gross profit margin in 2020 was 24.4%, down 5.9 percentage points from 2019. The company said that this was mainly due to the decline in average selling prices and the increase in personnel expenses and depreciation expenses. The parent company's owners' profit for the year was US$99.4 million, compared with US$162.2 million in the previous year. The financial report also showed that the company's monthly production capacity increased from 201,000 pieces to 223,000 pieces of 8-inch equivalent wafers.

In a letter to shareholders, Hua Hong Semiconductor pointed out that the company still achieved impressive performance in the extraordinary year of 2020, and has achieved profitability for 40 consecutive quarters. Shanghai and Xi'an are working in the same direction and driving forward in parallel: the 8-inch production line seizes the industry opportunities and has been operating at full capacity since the second half of the year; the 12-inch production line quickly develops and introduces products, and multiple new platforms have achieved mass production. The company adheres to the clear development strategy of "IC+Discrete" and continues to empower product solutions in a variety of new application scenarios such as mobile communications, the Internet of Things, new energy vehicles, and green energy. It is not easy to achieve the above results under the impact of the epidemic and the pressure of building a new 12-inch production line.

Hua Hong Semiconductor said that looking forward to 2021, the company will continue the "IC + Discrete" strategic policy, make full use of the advantages of the "8-inch + 12-inch" production capacity layout, continue to optimize the 8-inch product portfolio, and promote the expansion of 12-inch production to continue to provide customers with the best product solutions. The company also revealed that a number of new products such as 12-inch back-illuminated CIS image processing chips, BCD power management chips, standard memory, and 12-inch IGBT and super junction high-voltage power devices will be launched in the market in 2021, leading the company to another wave of growth.