Semiconductor Manufacturing International (SMIC) started generating revenues from 14nm FinFET process technology in the fourth quarter of 2019, when the China-based pure-play foundry saw its gross margin reach 23.8% compared with 17% during the same period a year earlier.
SMIC posted revenues of US$839 million in the fourth quarter of 2019, up 6.6% on year, while net profits hiked nearly 235% from a year earlier to US$89 million.
SMIC saw revenues generated from 14nm process technology account for 1% of the foundry's total wafer revenues in the fourth quarter of 2019. Meanwhile, China accounted for 65.1% of SMIC's total wafer sales during the quarter.
SMIC's revenues for all of 2019 totaled US$3.12 billion, down about 7% on year, while gross margin slid to 20.6% from 22.2% in 2018. Profits attributable to SMIC came to US$235 million compared with US$134 million a year earlier.
SMIC expects to post an up to 2% revenue increase sequentially in the first quarter of 2020, with gross margin ranging from 21% to 23%.
"In 2020, SMIC will resume a period of growth. At present, the first quarter revenue is better than seasonal," said SMIC in a statement. "In terms of business strategy, we will continue to expand mature process offerings and maintain our leadership in certain segments. In particular, demand for CMOS image sensors, power management, etc remains strong."
"We also expect our first generation of FinFET to steadily ramp up, and our second generation of FinFET to continue customer engagement," SMIC noted.
SMIC co-CEO Liang Mong Song indicated that the foundry's first-generation FinFET technology consists of 14nm and 12nm process nodes. SMIC already moved its first-generation FinFET technology to mass production in the fourth quarter of 2019.
SMIC's second-generation FinFET technology, dubbed N+1, is already engaged in customer product validation, according to Song. SMIC expects to kick off production in small volume using FinFET N+1 process technology in the fourth quarter of 2020.
SMIC posted revenues of US$839 million in the fourth quarter of 2019, up 6.6% on year, while net profits hiked nearly 235% from a year earlier to US$89 million.
SMIC saw revenues generated from 14nm process technology account for 1% of the foundry's total wafer revenues in the fourth quarter of 2019. Meanwhile, China accounted for 65.1% of SMIC's total wafer sales during the quarter.
SMIC's revenues for all of 2019 totaled US$3.12 billion, down about 7% on year, while gross margin slid to 20.6% from 22.2% in 2018. Profits attributable to SMIC came to US$235 million compared with US$134 million a year earlier.
SMIC expects to post an up to 2% revenue increase sequentially in the first quarter of 2020, with gross margin ranging from 21% to 23%.
"In 2020, SMIC will resume a period of growth. At present, the first quarter revenue is better than seasonal," said SMIC in a statement. "In terms of business strategy, we will continue to expand mature process offerings and maintain our leadership in certain segments. In particular, demand for CMOS image sensors, power management, etc remains strong."
"We also expect our first generation of FinFET to steadily ramp up, and our second generation of FinFET to continue customer engagement," SMIC noted.
SMIC co-CEO Liang Mong Song indicated that the foundry's first-generation FinFET technology consists of 14nm and 12nm process nodes. SMIC already moved its first-generation FinFET technology to mass production in the fourth quarter of 2019.
SMIC's second-generation FinFET technology, dubbed N+1, is already engaged in customer product validation, according to Song. SMIC expects to kick off production in small volume using FinFET N+1 process technology in the fourth quarter of 2020.