China’s leading wafer foundry SMIC released its annual financial report for 2023, showing annual revenue of US$6.322 billion, an annual decrease of 13.1%; Net income attributable to shareholders of listed companiesBenefitIt was US$903 million, a year-on-year decrease of 50.4%, and basic earnings per share were US$0.11.

Financial report shows SMIC’s gross revenue in 2023Rate of interestIt was 19.3%, a significant decrease of 18.7 percentage points from 38.0% in 2022; At the end of last year, the equivalent monthly production capacity was 806,000 8-inch pieces, and the annual average capacity utilization rate was 75%.

SMIC pointed out that in 2023, affected by factors such as global economic weakness and sluggish market demand, the semiconductor industry will experience a decline. In the second half of 2023, the terminal market is showing some signs of demand recovery, but overallthe supply chainInventories are at high levels, final product sales are in the adjustment phase, and inventory digestion will be the main theme of the semiconductor industry in 2023.

SMIC said that as a result, the group’s average capacity utilization rate declined, the number of wafer sales declined and the product mix changed. Furthermore, the group is in a period of high investment and depreciation will increase from 2022 onwards. The above factors together impact the Group’s financial performance in 2023.

SMIC also announced guidance for 2024, which projects mid-single-digit growth in sales revenue in 2024, with a growth rate no lower than comparable peers; The company plans to expand its recently announced 12-inch wafer fab and production capacity by 2024, with construction drawing in the year ahead. The financial report shows that capital expenditure in the fourth quarter of 2023 was US$2.341 billion, and capital expenditure for the whole year was about US$7.47 billion. The scale of capital expenditure in 2024 is expected to be similar to 2023.

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