Press Releases

SMIC Announces 2020 Annual Results



The below information is prepared in accordance with International Financial Reporting Standards.


  • Revenue increased by 25.4% from US$3,115.7 million in 2019 to US$3,907.0 million in 2020.
  • Gross profit increased by 43.3% from US$642.5 million in 2019 to US$920.9 million in 2020. Gross margin increased from 20.6% in 2019 to 23.6% in 2020.
  • Earnings before interest, tax, depreciation and amortization margin increased from 44.1% in 2019 to 54.3% in 2020.
  • Revenue from Mainland China and Hong Kong grew to 63.5% of total revenue in 2020, compared to 59.4% of total revenue in 2019.
  • The net debt to equity ratio remained low at -39.6% as of December 31, 2020.




In 2020, as the novel coronavirus pandemic spread globally, the “stay-at-home economy” strengthened demand for the Internet of Everything and brought rare market opportunities to the semiconductor industry. The year of 2020 is SMIC’s 20th year anniversary and marks the company’s first year of being successfully listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. After 20 years of independent technology development, market expansion, capacity construction and talent training, the company has steadily driven the continuous development cycle of its old and new fabs, and is gradually expanding production capacity, improving operational efficiency, optimizing product portfolio, developing FinFET technology, and striving to enhance the competitiveness of the company. The company has accumulated a lot and should have restarted its rapid growth. However, in the second half of the year, the company was impacted by U.S. Entity List and other restrictions, and was forced to adjust its customer structure and production capacity composition, which caused additional costs.

Nevertheless, the company has always been customer-oriented and strives to improve product quality and customer service. With unremitting efforts, in terms of mature process, SMIC worked on product platforms such as power management, ultralow power, radio frequency, image sensors, fingerprint recognition, and specialty memory, especially on 0.15/0.18 micron, 55/65, 40/45 nanometer, etcetera; these process nodes have all achieved industry leading standards; as for FinFET technology, the company reached the target of 15,000 wafers per month installed FinFET capacity as planned. The first generation FinFET mass production has steadily progressed, and the second generation has entered into risk production. In 2020, a number of financial indicators for the company set new records: annual revenue totaled US$3.907 billion, a year-on-year growth of 25.4%; gross profit was US$921 million, a year-on-year growth of 43.3%; net profit attributable to the company was US$716 million, a year-on-year growth of 204.9%; earnings before interest, tax, depreciation and amortization was US$2.123 billion, a year-on-year growth of 54.6%. These results could not have been achieved without the tireless efforts of the staff, and the trust and understanding of customers, suppliers, shareholders, investors, and the public.

Looking forward to 2021, opportunities and challenges coexist. On the one hand, the rise of new formats, new models and new applications, such as AI and Internet of things, drives demand for chips. At present, worldwide foundry capacity remains tight, customer demand is growing, but capacity expansion cannot keep up. On the other hand, the company still faces the impact of uncertainties from the U.S. “Entity List”, the delivery time of equipment procurement will be longer than in the past, and the progress of capacity building may not be as expected. Although we cannot completely control the irresistible external factors, we can cultivate new opportunities amidst crisis, open new frontiers in the changing landscape, and explore a more suitable path for SMIC’s sustainable development. The key focus in 2021, while continue to persist to be in compliant with the relevant laws and regulations of all jurisdictions, is as follows: first, to continue to work closely and actively communicate with suppliers, customers and relevant government departments, to promote the application of export licenses, and do our best to ensure the continuity of operation. Second, to strive to expand production capacity as soon as possible to meet customer demand.

The company always adheres to the concept of “caring for people, caring for the environment and caring for society”, on the basis of employees, and employees perceiving the company as home. During this period of pandemic, the company launched a series of measures to protect the health and safety of employees, while employees also diligently kept their posts to ensure production and operation of the company. In February 2020, the company, together with its directors and employees, donated RMB10 million in cash and supplies to the frontline fighting the pandemic. In the second half of the year, the company continued to carry out the “SMIC Liver Transplant Program” charity project. Over the past eight years, the “SMIC Liver Transplant Program” has collected a total of RMB28.93 million to help more than 500 unfortunate children. The company will continue to fulfill its corporate social responsibility and promote the development of corporate culture.

Finally, we would like to express our heartfelt gratitude to our employees for their efforts and dedication, as well as our customers, suppliers, shareholders, investors and the public for their concern and support!


Zhou  Zixue

Chairman of the Board and Executive Director

Shanghai, China March  31,  2020