Integrated circuit companies in STAR Market see strong growth in 2021
The opening ceremony of STAR Market is held in the Shanghai Stock Exchange, July 22, 2019. /CFP

The opening ceremony of STAR Market is held in the Shanghai Stock Exchange, July 22, 2019. /CFP

Among all 420 companies in the Shanghai Stock Exchange Science and Technology Innovation Board, also known as the STAR Market that have disclosed their business performance results for the year 2021, integrated circuit firms reported strong growth.

At present, the total number of companies in the field of integrated circuits (IC) in STAR Market have reached 55, accounting for half of the A-share listed companies of the same type, forming a development pattern with complete upstream and downstream chains and complete industrial functions.

According to the annual reports, IC companies in the STAR Market made a total revenue of 114.53 billion yuan ($17.15 billion) in 2021, a year-on-year increase of 44 percent. All of those IC companies saw revenue growth with an average level of 71 percent, according to the data compiled by 21st Century Business Herald.

Their total net profits attributable to equity holders was 23.851 billion yuan, a year-on-year increase of 191 percent, about 80 percent of which made year-on-year growth, the news website reported on Friday.

The substantial growth of IC companies is backed by continuously high investment in research and development. Last year, those IC companies spent  17.142 billion yuan in total on R&D investment, with a year-on-year increase of 15 percent.

Three companies among them, SMIC, Cambricon, and ASR Microelectronics, Invested more than 1 billion yuan in R&D, accounting for 19 percent of their revenue, higher than the 13-percent average level in the STAR Market.

STAR Market has a group of leading companies in the IC industry that are leveraging the capital market to integrate innovation, the industrial chain, talents, and policies, providing strong support for China to break the monopoly by foreign players and striving for self-dependence in the field, the report said. 

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