China's Semiconductor Manufacturing International Corp. (SMIC) on Thursday reported revenues of $981 million in the fourth quarter of 2020, surging 16.9 percent on a yearly basis. However, as sanctions weigh on growth, it expects revenue to increase in the "mid-to-high" single digits in 2021.

It posted profits of $176.8 million in the fourth quarter, a plunge of 32.5 percent from the previous quarter.

SMIC was added to the so-called "Entity List" by the U.S. Department of Commerce last December, just weeks before former President Donald Trump left the office, and, as a result, it's harder for U.S. suppliers to export their products to those companies on the list.

The sanctions will continue to affect the company's revenue growth, said Zhao Haijun, co-CEO of China's largest chipmaker, at a conference call on Friday.

"Without these influences, SMIC could have maintained last year's record growth momentum," Zhao said. "Although we cannot control external forces, we will cultivate new possibilities and opportunities in the face of crisis and changes."

Zhao said that the company remains in talks with suppliers and the U.S. government in hopes of obtaining licenses that would allow it to purchase equipment to boost production.

Commenting on customer losses, Zhao said that at present, customers didn't set SMIC aside and instead are cooperating with the company. "There is no change," he said.

Zhao confirmed that in terms of pricing, SMIC continues to honor contracts with its long-term clients.

"There are risks and uncertainties to our annual forecasts," Gao Yonggang, Chief Financial Officer of SMIC commented on the sanctions. He revealed that the company's revenue target for the first half of 2021 is around $2.1 billion.

The company aims to expand its capacity this year, by 10,000 units per month for its 12-inch wafer fabrication and by 45,000 units per month at the 8-inch fabrication line.

SMIC is an important player in the global semiconductor supply chain. With pandemic lockdowns driving up demand for electronics, such as laptops and smart phones, the company is under heavy pressure to deliver, and sanctions impact the company's development and the supply chain. 

Read more: U.S. blacklisting of SMIC to badly affect production capacity: company

(With input from Reuters)