We do not believe the market adjustment and the supply chain issues will carry significantly into the second half, cautiously optimistic about growth in the second half of this year.
In recent event we are happy to have announced an agreement with China Investment Corporation or CIC, a sovereign wealth fund investment institution, to invest in SMIC for convertible preferred shares and warrants.
Following this announcement, Datang, our largest shareholder also supported us by expressing their intention to exercise its pre-anti right by investing additional cash for convertible preferred shares and pre-anti warrants.
We welcome our new and existing shareholders and greatly appreciate their confidence in our future execution. These capital intentions will further help SMIC to expand its technology roadmap and strengthen our good hope as one of the leading boundaries globally.Another significant event I would like to highlight, on May 12th, we announced the signing of a joint venture with Hubei Science & Technology Investment Corporation, to jointly invest in and manage the 12-inch wafer production line of Wuhan Xinxin. Xinxin currently has both 90-nanometer and 65-nanometer in volume production with 45-nanometer production expected in 2012. This joint cooperation will serve as a strategic component in our expansion plan over the next five years and will allow us to quickly expand and increase market share on advanced technology capacity. Now, let me move on to our advanced technology developments. Our 65-nanometer revenue increased by more than one-third quarter-over-quarter to over 13% of revenue, 65-nanometer continues to be a key revenue driver for us this year, continued growth is expected as planned more takeout for 65-nanometer will more than double in second quarter, compared to first quarter of 2011. Customers are also taking advantage of our costs enhanced to 55-nanometer process. As an example in early March we announced entering 55-nanometer production with our Chinese customer RDA. Our 45 and 40-nanometer is also progressing and we have a leaving custom takeouts scheduled for this quarter. Read the rest of this transcript for free on seekingalpha.com