LCD Display Inverter

SMIC’s first-half financial report released on Friday (27th) showed that the revenue in the first half of this year (2021) was 16.09 billion yuan, an annual increase of 22.30%; the net profit was 5.241 billion yuan, an annual increase of 278.1%, and the basic earnings per share was 0.66 RMB.

SMIC said that the revenue growth in the first half of the year was mainly due to the increase in the number of wafers sold and the average selling price; the revenue ratio of the foundry business from 90nm and below processes in the first half of the year was 61.4%, an annual increase of 32.5% ; Among them, the revenue contribution ratio of 55/65nm technology is 31.2%, an annual increase of 22.8%; the revenue contribution ratio of FinFET/28nm is 11.1%, an annual increase of 62.3%.

Compared with the sharp increase in profits in the first half of the year, the R&D investment of SMIC’s new technology platform is decreasing. SMIC’s R&D expenses in the first half of this year were 1.937 billion yuan, accounting for 12% of its revenue, which was lower than the 2.278 billion yuan in the same period last year, accounting for 12%. Compared with 17.3%; as of June 30, there were 1,785 SMIC R&D personnel, a decrease of 634 compared with 2,419 in the same period last year; the total salary of R&D personnel was 230 million yuan, which was less than 326 million yuan in the same period last year; the average salary of R&D personnel was 12.9 10,000 yuan, not as good as 135,000 yuan in the same period last year, instead of an increase of 6,000 yuan.

SMIC bluntly stated that if the company’s future technology research and development investment is insufficient and cannot support the needs of technology upgrades, it may lead to the company’s technology being overtaken or replaced, which will have an adverse impact on the company’s sustainable competitiveness. SMIC also recognized this. At the end of June this year, SMIC announced its first large-scale equity incentive plan. The main object of incentives is not executives, but the company’s technical backbone. The development of SMIC for more than 20 years has cultivated a large number of technical backbones. The scope of this (equity incentive) is as many as 4,000 people, in order to let the company’s technical backbone grow together with the company.