According to reports on February 8th by TechNews, SMIC (Semiconductor Manufacturing International Corporation) doesn't seem very optimistic about the revival of the semiconductor industry. The company's total revenue for the full year of 2023 amounted to $6.3216 billion, representing a decrease of 13.1% compared to 2022, with an annual gross margin of 19.3%.
SMIC's co-CEO, Zhao Haijun, frankly stated that the company achieved a modest and steady growth due to the gradual improvement in customer inventory and the continuous recovery in demand for smartphones and internet services. However, from the perspective of the overall market, the strength of demand recovery is still insufficient to support a strong rebound across the semiconductor industry.
Zhao Haijun believes that after two years of global chip shortages and industry overheating, the semiconductor industry is facing challenges such as high inventory levels, sluggish macroeconomic conditions, and a deep correction in market demand caused by escalating geopolitical tensions, coupled with ongoing fierce competition among peers.
SMIC indicated that over the past year, the semiconductor industry has been at the bottom of the cycle, with weak global market demand, high industry inventory, slow destocking, and intense competition among peers.
In the latter half of 2023, there was some relief in the overall market inventory situation, and hotspots were observed in high-end product areas. However, sectors such as smartphones and consumer electronics, which are relevant to SMIC, have yet to see a major turnaround.
As a result, the group's average capacity utilization rate has decreased, wafer sales volume has declined, and there have been changes in product portfolio.
