This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Semiconductor Manufacturing International's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: SMI

Our Shanghai 8-inch fab is heavily utilized, mainly driven by power management IC and other specialty ICs. We continue to allocate more capacity for this increasing power management IC demand. In the meantime, through efficiency improvement, we have been able to augment capacity by about 11,000 wafers per month, a 15% increase, with virtually no CapEx.

Our Beijing 12-inch fab achieved record-high utilization and revenue level, of which the revenue in the second quarter grew 45% quarter over quarter. Beijing's growth driver were mainly smartphone networking, tablet and connectivity applications. Also in the second quarter we have aligned the equipment in our Beijing fab for greater flexibility in order to handle the strong 65nm orders. We currently foresee that our Beijing fab's 65nm/55nm shipment will continue to increase into the third quarter, primarily driven by demand from our mobile phone and other consumer customers.

At our Tianjin fab, we transferred a significant amount of loading from our Shanghai 8-inch fab with excellent results. Tianjin fab has significantly increased loading in the second quarter and we expect the Tianjin fab to continue to be heavily loaded in the third quarter.

Apart from macro reasons, the increase in demand and utilization is also driven by fundamental performance improvement which include our customer service, product mix, yield improvement, cycle time and defect density level. These enhancements effectively helped us in gaining customer confidence and recognition. For example, with our precision execution on 65nm products for one of the leading customers, we are now considered by them as a top-tier foundry based on our control of excursions, yield and cycle time performance. This results in accomplishing a stronger partnership with these leading customers and more advanced technology business.

Regarding the overall demand for our advanced technology, we are currently expecting that the number of new tape-out for 65nm and below will grow 30% from the second quarter into the third quarter. A large part of the expected growth was driven by our consistent track record and delivery quality -- delivering quality products for our customers, and thus they are expanding their product portfolios to be sourced from SMIC.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs