In discussing its 4Q19 financial results SMIC presented material showing that 1 percent of its 4Q19 revenue came from 14nm FinFET manufacturing; the first quarter 14nm has figured in SMIC's results.
In 4Q19 SMIC made a net profit of $89million up from a net profit of $27 million in 4Q18. That profit was on sales revenue of $839 million, up 6.6% YoY, compared to $788 million in 4Q18. The majority of SMIC's sales come at 0.18-micron (35 percent), 65nm (31 percent) and 40nm (16.2 percent).
For the full year SMIC's revenue was $3.12 billion, down from $3.36 billion in 2018. This was mainly due to decrease of revenue from Avezzano fab, which was sold in 2019 (see SMIC sells Italian wafer fab to Jiangsu ). The net profit for the year was $235million up from $134 million in 2018.
SMIC sold 65.1 percent of its 4Q19 production within the China and reduced sales to North America. European sales ticked up to 12.7 percent.
SMIC said 1Q20 sales were better than seasonal. In particular, demand for CMOS image sensors, power management, remains strong. The company guided for revenue to increase sequentially 0 to 2 percent in 1Q20.
The co-CEOs said in a statement: "We also expect our first generation of FinFET to steadily ramp up, and our second generation of FinFET to continue customer engagement. As a fundamental part of the Chinese semiconductor industry, we focus on expanding and improving our product portfolio offerings, expanding our target markets, and serving our increasingly mature customers in seizing the growing market opportunities."
The company advised that the capital expenditure budget for 2020 is set at $3.1 billion, which compares with a spend of $2.0 billion in 2019.
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