The latest performance report, smic 2015 revenue of $2.236 billion, up 13.53% from a year earlier, net profit of $253 million, up 65.66% from a year earlier. By the end of 2015, smic had 14 consecutive profitable quarters; At the same time, the company in both revenue and earnings in 2015 to a record high. In addition, smic, vice President of investor relations Feng Enlin recently disclosed that the company in the first quarter of 2016 orders in line with expectations, in the second quarter orders almost full, income and productivity growth target of 20% this year.

This seems to indicate the smic did a good job. But it is worth noting that Feng Enlin pointed out at the same time, in response to the demand in 2016 invested $2.1 billion in capital spending, as well as the company paper "in the past, the cumulative losses of $2 billion (RMB 12.5 billion) to digest", therefore, smic no dividends. And industry experts to accept "the China business news" reporter said in an interview, "in fact, in recent years in the core status of international in the global semiconductor industry basic has not changed. On the contrary, compared with the 'leaders' TSMC, technical level and profit ability, the gap is widening."

Benefit from the policy

According to the semiconductor industry experts great kang in zheshang securities recently introduced in an internal training and smic is after 2000 China's semiconductor industry policy of the first opportunity.

"Issued in 2000 in China's famous no. 18 (that is," to encourage the development of software industry and integrated circuit industry a number of policy "), the understanding of the no. 18 at the time, that is to say should be the development of integrated circuit industry, but the country is poor, no money, what can I do? Give some policy, import tax, tariff and value-added tax breaks, and business tax relief, tax breaks and so on. These policies have actually also played a big role, smic is established in the mainland, including Intel, hynix in some projects are also under this background." Great kang said.

Since then, the growth of the smic repeatedly to get attention. Smic, for example, in May 2012 with the Beijing agreement signed by letter committee, e-town development joint investment in the construction of a $7.2 billion international phase ii project.

The national integrated circuit industry development to promote outline formally announced in June 2014, especially the national integrated circuit industry investment fund formally set up in September 2014, as China's integrated circuit industry "leader", smic get government providing greater support and policy level.

The interviewed the expert inside course of study tells a reporter, qualcomm because of an antitrust investigation of the Chinese government, in order to get government support, in July 2014 and reach the cooperation development 28 nm process, smic and manufactured by smic Xiao dragon chip 410 agreement.

With the help of qualcomm, smic in mid - 2015 has been successfully production 28 nm PolySion process, at the beginning of this year will further the technology upgrade to 28 nm HKMG technology, the development for its 14/16 nano FinFET technology to lay a good foundation.

Meanwhile, the country's integrated circuit industry investment fund in February 2015 to hk $0.6593 per share subscription smic to issue 4.7 billion new shares, the investment amount is about hk $3.1 billion. The investment effectively alleviate the smic's funding problems, help smic three phase of the construction of a 12 inches of semiconductor production line again.

Shortly thereafter, the ministry of industry and information technology, a former chief economist Zhou Zixue March 2015 become smic's new chairman. Then, smic and huawei, qualcomm, Belgium microelectronics research center in June 2015 announced a joint investment smic IC research and development of new technology (Shanghai) co., LTD.

"As a representative of the" national team "of semiconductor manufacturing, smic's path of development, has a distinct policy guide." The foregoing the expert inside course of study tells a reporter, the joint investment of the project will be based on the Belgian microelectronics research center of advanced technology in semiconductor technology, focus on research and development of 14 nm CMOS technology, mass production to advance the outline of the national IC industry development of the "16/14 2020 nanometers scale production target".

Subject to the policy

Although the policy come to an enviable, but it seems to the personage inside course of study, policy support, like a "double-edged sword", also limits the faster development of smic.

"Smic and by letter committee, Beijing e-town development investment construction of the second phase is divided into two stages, the first phase capacity of 35000 pieces per month, July 2012, and by the end of 2015 to complete about production capacity of 10000 pieces, this shows that the project is not designed in accordance with the requirements of the market." Great kang in zheshang securities pointed out that in internal training and compare the samsung xi 'an project, the project starts in September, 2012, in May 2014, mass production, with 21 months, 2015 sales have reached 15 billion yuan, this fully notes international project influenced by non-market factors.

"Enterprises as long as the national capital, especially local government funds, because they consider more is the government's target, some will be out of the market demand, resulting in two goals are inconsistent, enterprises will be in a dilemma." Great kang in recent public signed article further suggests that "at this stage for smic fully in accordance with the market-oriented operation is not an objective".

Greatest kang said, smic three phase of the project has started last year, in the case of the second phase has not yet completed, this "to mean that I will give money, to open a factory, you (are) the non-market factors, not according to the production demand".

For smic's operation situation and market position, great kang think "profit is not easy" on the one hand, on the other hand also pointed out that with the widening gap between the "inevitable" TSMC.

"The world's top companies such as Intel, hynix, samsung, umc, TSMC piled in factories in China, such as smic face truly global competition, can be in such an environment out of the differentiation, profit is very not easy." Great kang said, "in 2009, chang after the second return, TSMC increasing spending on research and development equipment investment of nearly 10 billion dollars a year. In the basic processing route at the same level, smic's devotion to just $500 million to $1 billion a year, the widening gap between the two is inevitable."

A domestic semiconductor manufacturing personage points out, the global semiconductor manufacturing capacity against the background of accelerating shift to mainland China, "14/16 of the smic nano technology to energy production in 2020, and now the TSMC, samsung has developed in the 14/16 of nano technology, and both for this year production 10 nanometers, umc this year will be 14 nano FinFET process mass production, the smic is facing great pressure of competition."

In addition, umc in xiamen, and put into production at the end of this year 28 nm process, TSMC investment construction in nanjing 12 inches of semiconductor foundries, 16 nano FinFET process and put into production in 2018, the hope with the help of a tactical advantage to attract mainland customers smic, also will be a big challenge.