Summary:

• SMIC, China’s Semiconductor Manufacturing International Corporation, posted a record revenue of $7.2 billion for 2022, a 34% increase from 2021, despite US sanctions and declining electronics shipments.
• The company’s performance is notable as it was blacklisted in 2020 and used to rely on American companies for components and sales.
• Besides a cautious outlook for 2023 with projected revenue lower by 10% to 12%, SMIC is pushing back mass production at one of its major plants as well.

China’s Semiconductor Manufacturing International Corporation (SMIC) has posted a record revenue for 2022 despite sanctions by the US and declining electronics shipments. However, it warned investors to be wary of the future as it shared guarded projections.

The chipmaker posted a revenue of $7.2 billion which is 34% higher than what it made in 2021. According to a CNBC report, it was the second consecutive growth of over 30% by the company.

This performance is notable because SMIC was one of the Chinese companies that was blacklisted back in 2020, before that time, its clientele were mostly American companies. Also, it used to rely on many of these firms for some vital components.

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In addition, smartphones and laptops demand fell greatly in the last quarter of 2022 affecting manufacturers like South Korea’s Samsung, America’s Dell, and fellow chipmaker Taiwan’s TSMC.

Yet, the chip foundry managed to scale through this periods. While it did not explain how, its bullish expansion in China could be the reason behind its growth.

In 2023, however, SMIC wants investors to be a bit conservative as it expects difficult times. Its revenue projection for the first quarter of 2023 is less than that of Q4 2022 by about 10% to 12%.

Also, it will be pushing back mass production at one of its major plants by about one or two quarters. It appears that the slump in the semiconductor industry is just catching up to it, although it did mention that the delay is due to its ‘bottleneck equipment’.

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