China’s biggest chip maker SMIC posts record revenue, 2021 revenue of $5.44 billion up 39% year-on-year, the fastest growth rate since 2010

• China’s largest chipmaker Semiconductor Manufacturing International Corporation reported record revenue and a surge in year.
• SMIC is also continuing to invest heavily and the company said that it plans to spend $5 billion in capital as it tries to get three new plants off the ground.
• The global shortage of chips and the strong demand for local and indigenous manufacturing…..
• The company said that it will add more production capacity in 2022, than it did in 2021.
• SMIC can manufacture some of the less-advanced chips that go into cars.

China’s largest chipmaker Semiconductor Manufacturing International Corporation reported record revenue and a surge in profit last year amid a global chip shortage but strong dem.

SMIC recorded 2021 revenue of $5.44 billion up 39% year-on-year, the fastest growth rate since 2010. Profit came in at $1.7 billion marking a 138% year-on-year riThat record performance came despite SMIC being put on a U.S. trade blacklist called the Entity List in 2020.

“The global shortage of chips and the strong demand for local and indigenous manufacturing brought the Company a rare opportunity, while the restrictions of the ‘Entity List’ set many obstacles to the Company’s development,” SMIC said in a statement.

The blacklisting however cuts SMIC off from key American technology required to make the most advanced chips.

But SMIC can manufacture some of the less-advanced chips that go into cars, for example. Those have been in short supply globally. Last year, China Renaissance forecast that SMIC would be a beneficiary of the chip shortage. That has played out.

SMIC is also continuing to invest heavily and the company said that it plans to spend $5 billion in capital as it tries to get three new plants off the ground in Beijing, Shanghai and the southern Chinese city of Shenzhen.

The company said that it will add more production capacity in 2022, than it did in 2021.

“The global shortage of chips and the strong demand for local and indigenous manufacturing brought the Company a rare opportunity, while the restrictions of the ‘Entity List’ set many obstacles to the Company’s development,” SMIC said in a statement.