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China's SMIC raises revenue expectations following strong Q2
CGTN
China's Semiconductor Manufacturing International Corporation reports strong sales of $1.34 billion in the second quarter of 2021. /VCG

China's Semiconductor Manufacturing International Corporation reports strong sales of $1.34 billion in the second quarter of 2021. /VCG

China's Semiconductor Manufacturing International Corporation (SMIC) reported strong sales of $1.34 billion in the second quarter of 2021 and raised its revenue expectations for the whole year, according to its Thursday's earnings release.

The release showed the company's revenues in the June quarter went up 43.2 percent compared with a year ago, while gross margin was up 3.6 percentage points from a year earlier to 30.1 percent.

"The company's key financial metrics were better than expected in the second quarter," said Gao Yonggang, chief financial officer of SMIC.

On the back of the strong quarterly results, SMIC raised its annual revenue growth target and gross margin target to around 30 percent respectively, he said.

Despite the robust performance in the second quarter, SMIC still faces impact brought by the U.S. Entity List, according to Gao.

The U.S. Department of Commerce included the Chinese semiconductor giant on its entity list in December 2020, which limits access to U.S. technologies by certain foreign individuals, businesses and governments.

The Chinese market accounts for 62.9 percent of SMIC's total revenue in the second quarter, up from 55.6 percent in the first quarter, and is becoming increasingly important to the semiconductor giant.

"Uncontrollable factors such as license approvals, supply chain tightness and logistics impacted by COVID-19 have also inevitably affected the equipment arrival times," the company said in the release.

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