Chipmaker increases revenue forecast
By Zhu Shenshen |
July 24, 2012, Tuesday
|
Print Edition
Print Edition
SEMICONDUCTOR Manufacturing International Corp yesterday raised its second-quarter revenue and profit margin forecasts as the global chip market recovers.
Chips made by firms like SMIC are widely used in computers, tablets, phones, automobiles and home appliances.
Shanghai-based SMIC said it expects revenue in the second quarter to rise 25 to 26 percent from the first quarter, up from the 19 to 21 percent it forecast in May. As for profit margin, SMIC now expects 23 to 24 percent in the period, up from the 19 to 22 percent it originally forecast.
"The demand of our clients has surpassed our expectations," said SMIC's Chief Financial Officer Gareth Kung in a statement yesterday. "We expect to see continued growth into the third quarter."
Shares of HK-listed SMIC jumped 12.9 percent, the biggest increase since May, to 27 Hong Kong cents (4 US cents), compared with a 3 percent drop on the Heng Seng Index yesterday.
SMIC is the world's third biggest made-to-order chip maker and its new guidance is due to rising global chip demand, analysts said.
The global chip market started to recover in the second quarter.
Worldwide revenue in the sector will grow 4 percent year-on-year to hit US$316 billion this year, compared with a previous growth forecast of 2.2 percent, according to Gartner Inc, a US-based information technology research firm.
Chips made by firms like SMIC are widely used in computers, tablets, phones, automobiles and home appliances.
Shanghai-based SMIC said it expects revenue in the second quarter to rise 25 to 26 percent from the first quarter, up from the 19 to 21 percent it forecast in May. As for profit margin, SMIC now expects 23 to 24 percent in the period, up from the 19 to 22 percent it originally forecast.
"The demand of our clients has surpassed our expectations," said SMIC's Chief Financial Officer Gareth Kung in a statement yesterday. "We expect to see continued growth into the third quarter."
Shares of HK-listed SMIC jumped 12.9 percent, the biggest increase since May, to 27 Hong Kong cents (4 US cents), compared with a 3 percent drop on the Heng Seng Index yesterday.
SMIC is the world's third biggest made-to-order chip maker and its new guidance is due to rising global chip demand, analysts said.
The global chip market started to recover in the second quarter.
Worldwide revenue in the sector will grow 4 percent year-on-year to hit US$316 billion this year, compared with a previous growth forecast of 2.2 percent, according to Gartner Inc, a US-based information technology research firm.
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