In fact, SMIC recorded a year-on-year increase of 6.4% in revenue last year, which is similar to the growth rate of the foundry industry. The highlight of the company is the successful production of 28-nanometer technology products. Its revenue contribution rose to more than 10% in the fourth quarter of last year. , The sources of income are diversifying. For example, last year's revenue from automobile and industry doubled from 2016 revenue.
In fact, in the previous three years, the company boosted both revenue and profit growth with high capacity utilization rate, while in the past two years it entered a transitional period in which technology and factories were prepared for the next phase of growth and its future growth drivers included : 28nm, flash memory, fingerprint sensor and power management chip.
Zhao Haijun, co-chief executive of the company, said in a report that revenue in 2017 increased by 6.4% YoY, in line with the growth rate of the foundry industry. The successful 28-nanometer technology product portfolio contributed over 10% of revenue in the fourth quarter of last year. The 28% share of operating revenue of the quarterly nanotechnology products increased gradually to 11.3% .He explained that the decrease in gross margin in the fourth quarter was mainly due to the substantial increase in research and development expenditures on advanced processes.
Gao Yonggang, CFO of the company, said the group is developing 14-nanometer wafer technology products. Earlier, the Group entered into a joint venture with SMIC Shanghai, National Integrated Circuit Fund and Shanghai IC Fund to increase Nanfang Nanchang. After the injection, SMIC Southern Of the registered capital increased to 3.5 billion; the company in the SMIC will be reduced from 100% stake to 50.1%; while the National IC Fund and the Shanghai IC Fund total 49.9% stake in SMIC South, the timetable is expected this year In June and December refinancing, will exceed 1 billion in amount.Co., Ltd. Co - CEO Liang Mingsong added that the target is put into operation in the first half of 2019, the product will have higher efficiency and lower cost, easy to integrate into the equipment.
The company expects to spend $ 1.9 billion on capital expenditures in 2018 fab operations, 40% of which will be used to expand Beijing's 12-inch fabs and Tianjin's new projects, while the rest will continue to expand its technology platform and buy R & D facilities Liang Mengsong also pointed out that since taking office, the Group has stepped up its R & D team in the past 4 months to enhance its efficiency and adaptability. In the future, it will continue to lead the group in developing high-end wafer technology.