SMIC Reports 2022 Third Quarter Results

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Nov. 10, 2022 – 

SHANGHAI, Nov. 10, 2022 -- Semiconductor Manufacturing International Corporation (SEHK: 00981; SSE STAR MARKET: 688981) ("SMIC", the "Company" or "we"), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended September 30, 2022.

2022 Third Quarter Highlights

• Revenue was $1,907.0 million in 3Q22, an increase of 0.2% QoQ from$1,903.2 million in 2Q22, and 34.7% YoY from $1,415.3 million in 3Q21.
• Gross profit was $742.2 million in 3Q22, compared to $750.5 million in 2Q22, and 58.6% YoY from $467.9 million in 3Q21.
• Gross margin was 38.9% in 3Q22, compared to 39.4% in 2Q22 and 33.1% in 3Q21.

Fourth Quarter 2022 Guidance

The following statements are forward looking statements based on current expectations and involved risks and uncertainties. The Company expects (in accordance with IFRS):

• Revenue to decrease by 13% to 15% QoQ.
• Gross margin to range from 30% to 32%.

SMIC management commented: "The third quarter's revenue was $1,907 million, with a slight decrease in shipment and a small increase in blended ASP due to product mix optimization, therefore the revenue remained flat comparing to the previous quarter. Externally, demand declined and internally, some fab conducted annual maintenance, while the monthly capacity increased by 32 thousand 8-inch equivalent wafers, thus the capacity utilization was 92.1%, down five percentage points from the previous quarter. Combining the above factors, gross margin for the third quarter was 38.9%, down 0.5 percentage points sequentially.

In the fourth quarter, due to the weak demand in the mobile phone and consumer market, and overlapping with the impact from that some customers need time to interpret the newly released US export control rules, the Company's revenue is expected to decline by 13% to 15% sequentially, with gross margin in the range of 30% to 32%. According to the results of the previous three quarters and the mid-point of guidance for the fourth quarter, the Company's full year revenue is expected to be around $7.3 billion, up around 34% year-over-year, and gross margin is expected to be around 38%. The capital expenditure plan this year is revised upwards from $5.0 billion to $6.6 billion.

About the recently updated and revised export control rules by the United States, according to a preliminary interpretation, the new rules have an adverse impact on our production and operation. We have maintained close communications with suppliers, while the clarification of some definitions in the new rules and the assessment of impact on the Company are still in progress.

Based on the current macroeconomic trends and the pace of de-stocking, we have yet to see signs of recovery in the industry. The adjustment may last longer as this cycle is overlaid with multiple complex external factors. The development of the Company is inseparable from seizing the momentum when the industry is booming, and even more inseparable from persistence and patience when the industry is going through a difficult time. We are still full of confidence in the Company's medium-to long-term development."

To see the complete results including financial tables, please click here:

https://smic.shwebspace.com/uploads/636cd68f/Q322_EN.pdf

Conference Call / Webcast Announcement

Date: Friday, November 11, 2022

Time: 8:30 A.M. - 9:30 A.M.

WEBCAST

The call will be webcast live at:

https://edge.media-server.com/mmc/p/pd6di76b

CONFERENCE CALL

Please register in advance for the conference call at:

https://register.vevent.com/register/BI0aa19d1da9e54d33bedae5daa162081e

REPLAY

Recording will be available 1 hour after the event and it will be archived for 12 months.

https://www.smics.com/en/site/company_financialSummary

About SMIC

Semiconductor Manufacturing International Corporation (SEHK: 00981; SSE STAR MARKET: 688981) and its subsidiaries is one of the leading foundries in the world and is the front runner in manufacturing capability, manufacturing scale, and comprehensive service in the Chinese Mainland. SMIC Group provides semiconductor foundry and technology services to global customers on 0.35 micron to FinFET process node technologies. Headquartered in Shanghai, China, SMIC Group has an international manufacturing and service base, with three 8-inch wafer fabrication facilities (fabs) and three 12-inch fabs in Shanghai, Beijing, Tianjin and Shenzhen, and four 12-inch fabs under construction in Shanghai, Beijing, Shenzhen and Tianjin. SMIC Group also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan, China, and a representative office in Hong Kong, China.

For more information, please visit www.smics.com.

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