At the Semiconductor Manufacturing International Corporation(688981) fourth quarter 2021 performance presentation held this morning, the company’s management focused on the topics of market concern such as production capacity, capital expenditure and depreciation.
“Under the condition that the overall production capacity is in short supply, the demand in some fields is slowing down, and the production capacity has gradually shifted from the full line shortage to the structural shortage stage. How to keep up with the industrial development trend, dynamically balance the stock and incremental demand, and make up for the structural gap in the industrial chain is an important task of the company this year.” Semiconductor Manufacturing International Corporation(688981) acting chairman Gao Yonggang said bluntly.
It is reported that due to the lack of development power in the mobile phone and consumer product market, the supply and demand of the stock market have gradually reached a balance. However, there is strong demand in incremental markets such as Internet of things, electric vehicles and medium and high-end analog ICs, and there is a structural capacity gap.
the reporter of science and Innovation Board daily noted that at present, the proportion of total revenue of mobile phones and consumer electronics shows a downward trend, while the proportion of revenue from other fields such as new energy vehicles is gradually increasing. among them, the total revenue of Q4 mobile phones and consumer electronics accounted for 54.9% in 2021, with a month on month / year-on-year decrease of 0.7 percentage points and 2 percentage points respectively; Revenue from other fields accounted for 32.4%, with a month on month / year increase of 0.5 percentage points and 5.1 percentage points respectively.
“we have made various product platforms on each process node, and the production capacity can be switched between different platforms and nodes. Now we focus on 40nm and 55nm. 40nm is the most out of stock this year, and 55nm is in great demand.” Zhao Haijun, CO CEO of Semiconductor Manufacturing International Corporation(688981) , said that the equipment models used in the 90nm to 22nm process of the company are basically the same and can be converted for production. In capacity allocation, the company will adjust the proportion flexibly.
By the end of the fourth quarter of 2021, Semiconductor Manufacturing International Corporation(688981) had a monthly production capacity of 621000 8-inch equivalent wafers, an increase of 4.6% month on month. At the beginning of 2022, the Shanghai Lingang Holdings Co.Ltd(600848) project of Semiconductor Manufacturing International Corporation(688981) has broken ground, and the two projects in Beijing and Shenzhen are advancing steadily. It is expected to be put into production by the end of 2022.
“in 2021, the company will increase its monthly production capacity by 100000 pieces, equivalent to 8 inches. The planned production capacity increment in 2022 will be more than that in 2021. It is expected that the average monthly production capacity will be increased by 130000 to 150000 pieces in 2022. After the completion of the three new projects, the total production capacity of the company will be doubled.” Zhao Haijun said that the current equipment delivery cycle is further extended, and the production time of new capacity may be delayed, but the company will strive to deliver capacity according to the established target.
The reporter of the science and Innovation Board daily noted that the total capital expenditure in Semiconductor Manufacturing International Corporation(688981) 2021 was about 4.5 billion US dollars, while the capital expenditure in the fourth quarter was 2.13 billion yuan, accounting for about 47.3% of the whole year. Most of the capital expenditure of the company is used for the expansion of advanced processes and other joint venture projects, and most of it is used for the expansion of new processes. Capital expenditure is expected to be US $5 billion in 2022, with a year-on-year increase of about 11.15%.
According to reports, the company’s capital expenditure is mainly divided into three parts, including production base construction, settlement of in place equipment and prepayment of long-term equipment. The capital expenditure budget for 2022 has taken into account the delay of equipment delivery. Zhao Haijun explained: “this year, the company’s new 12 inch production capacity will be more in nodes with complex processes, and the average capital investment of each piece is higher than that of last year.”
On the issue of depreciation, Gao Yonggang said: “when we make capacity planning and capital expenditure, we will consider the affordability of depreciation to avoid large fluctuations in the company’s performance. This year’s depreciation should increase compared with last year, but the growth rate is smaller than last year.”
