Chinese chipmaking giant Semiconductor Manufacturing International Corp (SMIC) on Wednesday reported a surge of 137.8 percent in net profits in 2021, buoyed by increased wafer shipments and higher average selling prices.
SMIC recorded net profits of $1.7 billion for the whole of 2021, according to its fiscal filing with the Hong Kong stock exchange.
The company raked in revenues of $5.44 billion last year, up 39.3 percent from the previous year. Its wafer revenues rose by 43.4 percent year-on-year to reach $4.98 billion.
A breakdown of its revenues by application segments showed that smartphones made up 32.2 percent of SMIC's wafer revenues, while wafer revenues resulting from consumer electronics accounted for 23.5 percent and that from smart homes represented 12.8 percent.
In technology terms, SMIC generated 29.2 percent of its wafer revenues from semiconductors of 55-65 nanometers, while chips of 40-45 nanometers contributed 15 percent, and more mature process nodes of 28 nanometers accounted for 15.1 percent.
By comparison, SMIC's revenues from chips of 28 nanometers or smaller stood at 9.2 percent in 2020 and 4.3 percent in 2019, according to the company's 2020 fiscal disclosure.
In another sign of the wafer giant's rising technology profile, SMIC garnered 12,467 patents in the integrated circuit (IC) sphere at the end of last year, including 10,698 invention patents, according to its Wednesday filing. It also had 94 IC layout design rights.
SMIC also warned of the fallout of trade frictions on its businesses. "Economic globalization has encountered ups and downs, and multilateralism has been hit. In particular, the China-US economic and trade friction has adversely affected the production and operation of some enterprises and market expectations," per its Wednesday filing.
If trade tensions between China and the US and other economies continue to escalate, with resultant heightened import and export restrictions, and higher tariffs among other trade barriers, the company may face risks such as shortages or rising prices for production materials.
Additionally, "the US' enhanced export controls targeting Chinese top high-tech companies may restrict the wafer foundry and supporting services provided by the company to certain customers, and the company may face limited production capacity and reduced orders," according to SMIC.
Its shares in Hong Kong closed up 1.76 percent on Wednesday while those on the STAR Market in Shanghai edged up 0.95 percent.
The Shanghai-based chip giant said on Monday that its production and operations remain normal and the company would keep a close eye on the virus situation and vows all-out virus containment.