Despite COVID-19 disruptions and US-China conflicts, the three leading China-based foundries, including Semiconductor Manufacturing International Corporation (SMIC), Huahong Group (Huahong) and CSMC Technologies Corporation (CSMC), performed brilliantly with an aggregated total revenues of US$6.3 billion (US$1:CNY6.9) in 2020, soaring more than 20% year-over-year as their customers aggressively ramped up orders in fear of component shortages and they expanded capacity while raising prices.
Going into 2021, even though macroeconomic uncertainties remain, the three leading China-based foundries can expect their total revenues to increase 16% year-over-year to reach a new high with chips still in tight supply and customers strongly boosting orders.
The three leading China-based foundries each enjoyed more than 15% growth in 2020 revenues as a result of chip shortages, their capacity expansion leading to shipment growth and price hikes. The US government stepped up the sanctions against Huawei by banning the supply of chips, equipment and foundry services to Huawei starting third-quarter 2020.
