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As usual, our call will be approximately 60 minutes in length. The earning press release and the quarterly financial presentation are available for you to download at www.smics.com under the Events and the Presentation section.Please also be reminded of the Safe Harbor statement, which provides as follows. SMIC’s statements of its current expectations are forward-looking statements subject to significant risks and uncertainties. The actual results may differ materially from those contained in such forward-looking statements. Information as to those factors that could cause actual results to vary can be found in SMIC’s Form 20-F filed with the United States Securities and Exchange Commission on June 28, 2011. I will now turn the call over to our CEO, TY Chiu for the opening remarks. Tzu-Yin Chiu Thank you, En-Ling. Good morning and good evening to everyone. Thank you for joining our earnings webcast. Since the last update, we have completed extensive assessment of SMIC’s situation from various aspects. So today, I would like to address what has been completed, our directions and strategy, technology status and state of our business. In the past three months, our focus was on stabilization of both external and internal stakeholders. I met with all of our key customers in North America and the Greater China, which I will continue to do soon on a quarterly basis. We have communicated to our customers that SMIC intends to be globally competitive foundry powerhouse and will continue to be their long-term partner. We remained committed to pushing advanced technology R&D. I am pleased that our customers maintain their high expectations of SMIC and their partnership and the partnerships remain unlevered. Stability has returned to SMIC organizations, our fabs are running smoothly and our technology development is making steady progress. We have enlarged our core management team from 5 to 7 individuals including a nil technology development ahead and there are two operation leaders. These changes ensure attention to execution, it’s follow through to the details and decision is made with speed.
As a result, our teamwork and coordination improved. Thus, improving our overall execution in that business effectiveness in fact, we witnessed a short end cycle time, process enhancement, better defect density level and simply continued overall operational improvement. As a result of the initiative to better execute, to better execution. One of our 65-nanometer product from our key customer has recently passed full qualification. We believe these positive improvements in coordination and execution will result in improved overall loading.Now let me address SMICs direction and strategy. Our objectives remains step passed, we will work towards sustainable profitability and as the preferred boundary provider in China as we continue our partnering with our international and domestic customers. In order to achieve this, our strategy is two folds. In the near term we’ll work on boosting overall capacity utilization and efficiency. And secondly, we will maintain our technology advancement as well as pursuing value-added differentiation. In the near term we will focus on effectively filling our fab to improve our profitability. To do this we are working closely with our customers on enhancing each fab’s technology, flexibility and in shortening the project cycle for production. As an example of recent actions, we have qualified our changing fab platform for CIS production to accommodate business expansion and first increase changing fab utilization. For long term, we will continue our technology advancement and pursue value-added differentiation by focusing on markets that is best addressed by our position in China. We are now in process of researching and analyzing methods for differentiation as well as identifying specific markets, especially in China that are best suited for SMIC. We will update you more on our progress in due time. As for technology development we are very encouraged by our 45 and 40-nanometer progress with very positive feedback from our customers. We are targeting some 45 nanometer wafer revenue by the end of the year. Our 32 and 28 nanometer development is on schedule as planned and we target to have both public – ready in 2013. Read the rest of this transcript for free on seekingalpha.com