Smic's recently announced earnings conference call in the first quarter of 2016, the company will raise 2016 wafer generation GongZiBen spending to $2.5 billion. This is smic within three months the second higher capital spending budget - in the middle of February 2016 in the fourth quarter earnings conference call 2015, the company has declared 2016 capital spending will increase by $2015 in 1.57 billion to 2015 dollars. So far, smic 2016 capital expenditures budget increase rate of close to 60%.
Why do you want to raise capital spending? Smic executive chiu said the company sales revenue growth is still restricted by the existing production capacity, capacity utilization rate in the first quarter of 2016 reached 98.8%, to raise revenue will have to expand capacity. A further reason is, chiu in mid - 2015, "smic's future will be China's leading, the world's top three semiconductor manufacturers as the goal."
TSMC is consolidate their all the advantages of chip generation industry first, Romania and umc is built around the second contested, smic to enter "the world's top three," you must go beyond one of Romania's and umc. And Romania, and umc than smic in sales revenue, market share, etc, there are still a big gap, if you want to implement catch up you have to at least not in terms of money lost to rivals, invested $2.5 billion in 2016 will be smic's investment in one of the biggest in history.
Obvious gap
In 2016, at least on the capital investment, smic will realize the couplet electricity, in the field of pure wafer foundry into the top three in the world.
Figures show that in 2016, the world's major pure foundries plans to spend $9.5 billion, TSMC, Romania, is plans to cut spending cuts, did not disclose the specific data, umc and smic plans to spend $2.1 billion, $2.5 billion, smic implements the couplet electricity beyond.
In other ways, but still has a long way to smic distance of the world's top three. Market-research firm Gartner, according to the latest data, according to the output, revenue of $26.566 billion, TSMC, in the global market share has reached 54.3%, continued to dominate the world first throne; , Romania, because of the acquisition of IBM wafer revenue rose to $4.67 billion, a 9.6% market share; Revenue of $4.56 billion adr is squeezed into the second third from 2014, a 9.3% market share; Samsung, smic fourth, fifth, smic on revenue of $2.229 billion, the city accounted for 4.6%.
According to the new technology's Asia Pacific President Lin Rongjian recently quoted in a speech data, "2015 other foundry enterprise market share, respectively is 10.36%, Romania's 10.36%, umc, samsung, smic, 6.28% to 4.66%."
With reference to the above data, both revenue scale and market share, currently smic is only equivalent to about half of the Romania DE and umc, if you want to go beyond any one of the two is difficult.
"Smic's goal is within the next 3 to 5 years to become the world's top three enterprises." Smic's chief financial officer and executive vice President Gao Yonggang to hark back to the enterprise vision media recently. He also analysis, "in the coming 3 ~ 4 years, smic's sales revenue growth forecast is more than 20% a year, according to the calculation, by 2018, smic's sales are expected to reach $4 billion, close to the current umc and Romania's sales figures."
But this is false and Romania settled and umc sales revenue is in "static" cases, deduction of smic's sales revenue growth. Data show that smic in 2013, 2014, 2015 revenue year-on-year growth of 21.6%, 0.78% and 13.53% respectively, the average growth over the past three years could not have reached more than 20%.
The key to improve process
Disclosure smic, $2016 in 2.5 billion, is expected to be used for capacity expansion.
Followed by a full money, focus on research and development of 14 nm process logic chip technology; The third is to use the mask for equipment research and development, the business and assets on the acquisition of wisdom. About acquisition, smic's announcement shows that the company intends to through the long telegram technology (15.430, 0.18, 1.18%) 19.61% stake and subscribe long telegram technology long telegram shinco from its new shares, the cost of 2.6 billion yuan, become long telegram the single largest shareholder of science and technology.
A chip industry practitioners believe that smic is the most important task, not with the world's top three spell scale, but the practice "the internal strength", so as to achieve true global leader in the future. This personage analysis, for a pure foundries, an important process node, mark should be the technology platform sales accounted for more than 20% in the total sales revenue, but smic's goal is "28 nm process node in 2016 sales revenue plan account for 5% ~ 8% of total sales revenue", this shows that "smic's main technology platform is not this year 28 nm, but 65/55 nano", smic in technological process and a leading global level are far apart.
About how to really become "the first three of the world", the problem such as semiconductor manufacturers, journalists May 10 to smic related department to send the interview fax, relevant personage first promised to respond to questions in writing, but two days later on the phone, said "we declined to be interviewed.
