Taiwanese and Korean chip companies launched a first-class war, and SMIC's profits fell by 6025%！
China Semiconductor Manufacturing Corporation (SMIC) recently announced its fourth-quarter and full-year results for fiscal 2023, including: SMIC (SMIC) and SMIC (SMIC).
According to the above data, SMIC's operating income in 2023 is 452500 million US dollars, down 861%；Net profit was 482US$300 million, a decrease of 60 percent from the same period last year25%。
I must say 60The 25% drop is still surprising, not just last year's.
Why are profits so low? The reason is very simple, the reason is very simple, first, 2023 is a trough in the semiconductor industry, with sluggish market demand, declining orders, and low capacity utilization.
Secondly, other manufacturers are still fighting the best war, resulting in a decline in chip profits.
First of all, the data shows that at the end of last year, SMIC's 8-inch monthly production capacity reached 8060,000 units, the average annual production capacity is about 75%, that is, a quarter of the production capacity is idle, and the factory generally does not stop production, even if it does not produce, the equipment will be idle, which has a significant impact on profitability.
Looking at the second part, due to weak demand, manufacturers such as Samsung and UMC have been adjusting the chip size since last year, often as high as 10 or 15 percent.
As we all know, from 2022 onwards, the sales of mobile phones, computers and other electronic products worldwide have generally declined, and the decline in demand has led to a decrease in orders, and manufacturers have to reduce prices to win orders.
In the end, the industry as a whole will be, and of course everyone's profits will fall. Not to mention SMIC, even TSMC has made ** adjustments.
For a long time, it has been widely believed that there is a huge chip gap in China, and if domestic factories expand their production capacity, there is no need to worry about overcapacity, and domestic manufacturers have been waiting for the emergence of domestic chips.
Earlier, some analysts said that SMIC still has at least 8 capacity gaps by 2025 compared to its existing production capacity, so there is no need to worry about overcapacity.
However, now it seems that if the world's major chip factories start to fight, domestic chip manufacturers may not be spared, after all, chip manufacturers still have to pursue cost performance.
Therefore, when expanding production, it is still necessary to take into account the growth of production capacity and the demand of industry worldwide.
However, in 2024, the chip manufacturing industry will begin to recover, so SMIC's difficult period is about to pass, and good days may come soon, what do you think?