Semiconductor Manufacturing International Corporation (SMIC), China's largest silicon wafer foundry, experienced its largest net operating loss over the past five years in 2008. The company posted a loss of US$440 million, compared to an operating loss of US$19 million in 2007.
SMIC saw its revenues slide 12.7% to US$1.35 billion in 2008, which the foundry attributed to capacity adjustment at its Beijing fabs as well as the world economic meltdown.
In line with its revenue drop for last year, SMIC's shipments of 8-inch equivalent wafers went down from 1.85 million units in 2007 to 1.61 million in 2008. The company noted that its ASP climbed slightly to US$840 in 2008 compared to US$838 a year ago, thanks to its early exit from the DRAM business.
SMIC's DRAM capacity was reallocated to logic output, a move which resulted in some asset impairment for the year. Shipments of logic ICs grew 24.9% on year, despite a decline in overall shipments.
SMIC's capital spending for 2009 is set at US$190 million, compared to US$660 million in 2008, according to the company. The foundry said it has begun implementing some cost-reduction measures to tackle the ongoing economic downturn, including a 15% cut in payroll costs, which it said was necessary in order to maintain its workforce.
For 2009, SMIC said it intends to focus efforts on seeking more cooperation with China-based IC design houses. The Greater China region accounted for 31% of SMIC's overall revenues last year, up from 24% in 2007.
Source: Company, compiled by Digitimes, April 2009
SMIC HQ in Shanghai
Photo: Claire Sung, Digitimes, April 2009
Article translated by Jessie Shen
