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China's top chipmaker reports record revenue in 2021
CGTN
The logo of Semiconductor Manufacturing International Corporation (SMIC) is shown on its company building in Beijing, China, October 7, 2021. /CFP

The logo of Semiconductor Manufacturing International Corporation (SMIC) is shown on its company building in Beijing, China, October 7, 2021. /CFP

Business boomed last year for China's leading chipmaker Semiconductor Manufacturing International Corporation (SMIC) on the back of a global chip shortage, with revenues and profits soaring despite pressure from U.S. sanctions, it said.

Sales for calendar 2021 were up 39 percent on the year at a record of $5.4 billion, propelled by worldwide demand, the company said in an annual financial report published on Thursday.

Refinitiv data showed it was the company's strongest growth in annual revenue since 2010.

"The global shortage of chips and strong demand for local and indigenous manufacturing brought our company a rare opportunity," Guo Guangli, the secretary of the board, said on an earnings call on Friday.

SMIC now has manufacturing plants in Beijing, Shanghai, Tianjin and Shenzhen, with ongoing expansion in Beijing, Shanghai and Shenzhen. 

The company is pushing ahead with expansion despite U.S. sanctions that have shaken plans to move into high-end chip manufacturing.

Late in 2020, Washington put SMIC on the Department of Commerce's entity list over concerns it had ties to China's military, requiring U.S.-based suppliers to obtain licenses to deal with the company. SMIC has denied having such ties.

Beijing is acting swiftly to cut dependence on the U.S. and other countries for chip supplies, which became more urgent after a global shortage of semiconductors due to the pandemic. Its latest five-year economic plan also takes research into cutting-edge chips as a priority.

(With input from Reuters)

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