2 1 Shi Ji Jing Ji Bao Dao·2025-08-08 15:24Core Viewpoint - Semiconductor foundry leader SMIC reported a mixed performance in Q2 2023, with revenue slightly declining but showing year-on-year growth, while net profit fell short of market expectations [1][2]. Financial Performance - Q2 2023 revenue was $2.209 billion, a decrease of 1.7% quarter-on-quarter but an increase of approximately 16.2% year-on-year [1]. - Net profit for Q2 was $132.5 million, down 19% year-on-year, and below market expectations of $167.1 million [1]. - Gross margin for Q2 was 20.4%, a decrease of 2.1 percentage points quarter-on-quarter but an increase of 6.5 percentage points year-on-year [1]. - For the first half of 2023, total revenue reached $4.46 billion, a 22% increase year-on-year, with a gross margin of 21.4%, up 7.6 percentage points from the previous year [5]. Capacity Utilization - Q2 capacity utilization rate was 92.5%, an increase of 2.9 percentage points quarter-on-quarter and up 7.3 percentage points year-on-year [1][6]. - The monthly capacity for 8-inch and equivalent wafers increased to 991,000 pieces by the end of Q2 [6]. Market Outlook - SMIC's guidance for Q3 2023 indicates a revenue growth of 5% to 7% quarter-on-quarter, with a gross margin forecast of 18% to 20% [1]. - The semiconductor industry is expected to grow at a rate of 5% to 6% in the coming year, with AI-related foundry demand potentially increasing even more [2]. - The company remains optimistic about future growth, aiming to exceed the average performance of comparable peers for the year [8]. Segment Performance - Revenue from the consumer electronics sector accounted for 41% of total revenue, while smartphones contributed 25.2% [5]. - The automotive and industrial sectors showed a growing revenue contribution, with automotive electronics experiencing a 20% quarter-on-quarter growth in Q2 [5]. - Demand for analog chips, particularly in fast charging and power management applications, has significantly increased, driven by domestic companies replacing foreign suppliers [5][6]. Pricing and Competition - The average selling price (ASP) of SMIC's products decreased by 6.4% quarter-on-quarter in Q2, but an increase in ASP is expected in Q3 due to the removal of discounts on 12-inch wafers [9]. - The company is cautious about price competition, indicating that it will support customers in maintaining market share if necessary [9].