China’s biggest chip maker the Semiconductor Manufacturing International Corporation posted its first profit in more than three years and claimed the future's bright.
SMIC said it made $96.03 million in the second quarter, compared to a loss of $98.2 million during the same period last year. Revenue was up 42.5 per cent to $381.1 million, the firm said.
A one-off gain from the revaluation of company securities helped the outfit turn a profit. The last time it managed to get into the black was in 2007.
The chip maker said its gross margins also improved somewhat to 15.6 per cent in 2Q10 compared to 14.6 per cent in 1Q10.
It reckons it can improve its margins up to around 21 per cent next quarter and expects revenue to grow by about five per cent too.
In its statement, chief executive officer David Wang said: "With the world's highest GDP growth, China's market is playing a progressively greater part in the overall demand for IC's and playing an increasingly key role in SMIC's future success. Driven by China's maturing fabless companies, our China revenue has grown 27.4 per cent quarter-over-quarter."
Sales of 65nm process chips had more than doubled in the quarter over the previous three months, he said, before claiming the company’s 45/40nm technology will be ready by the end of the year.