Interim results, smic said net profit growth than the same period last year rose 20.3% to $159.1 million, revenue rose 25.4% to $1.3245 billion, operating profit rose 71% to $181.6 million, which hit a record high. Executive vice President and gareth kung said in an interview yesterday, secretary of the company expected earnings this year will be more than $250 million last year, and China's integrated circuit (IC) market development in the future.
Gareth kung, points out that the present China is the biggest consumer electronics market, is also the largest electronic production base, so let it be in large IC industry in China, now have enough talent and design support, further development by back-end assembly process advanced IC industry. He said, referring to the 1990 s computer manufacturing industry in Taiwan, but in the mobile phone s chain has moved to China, are all follow the direction of development in the next five years, is an opportunity for the company.
New plant capacity utilisation ji was 100%
Besides the IC market, smic acquired in June Italy IC wafer foundry LFoundry 70% stake, outside the previous consumption and communication market, develop automotive and industrial chip business. Gareth kung refers to the automotive electronics market will be a high growth markets, car use more and more electronic components, such as smart phone access needed for car parts, sensor for the unmanned technology and so on. In addition, in the industrial age 3.0, factory automation needs a large number of sensors and camera to help factory to extend the time of production. Capacity utilization is only 60% of the new factory now, he wants to in August 18 months after the merger to reach the 100% target. If the utilization rate was 100%, and the income brought by the new factory will be from $200 million to more than $200 million a year.
Research and development technology, gareth kung refers to spend quite a lot of core resources in intellectual property (IP), to provide part of the product design, help to retain customers. Now many mainland customers all parts no ability to design the product, need to contract to assist. The core is to provide some design module, provide product core part can production. This can save time for customers; And for the core, customer OEM company such as conversion need to redesign and certification, depends more on the core service to the customer.
Focus on core business Has no intention of its upstream and downstream
Core in the research and development costs $114 million, the year 2011 to 2015 has invested $272 million, accounting for company income 12%; IP core production and use of wafer shipments overall shipments by 53% in 2011 to 78% in 2015. But gareth kung said now would focus on core business, has no intention of downstream industry to expand upwards.
In the second half of the product prices will remain stable
The message refers to, umc and brilliant future will be to build factories in mainland China, to join the 12-inch wafer market, gareth kung think other foundries "mainland if not to go to other places", so don't worry about competition. Said again, other factors, such as its products to service to win, will never enter into price wars to rob market, prices will remain stable in the second half of the products.
