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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 Presentations section.Please be also 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, T.Y. Chiu for the opening remark. Tzu-Yin Chiu Thank you, En-Ling. Good morning and good evening to everyone. And also belated Happy New Year greeting to all of you. Thank you for joining us for our earnings webcast. I would like to first address the state of our business. As we mentioned in last quarter, the second half of 2011 was weak in terms of foundry business. We believe this was mainly due to the overall industries conservative inventory level caused by economic uncertainties. As a result our total revenue was $1.3 billion in 2011 representing a decrease of 15% year-over-year. With increased customer confidence and the recovering economy we are seeing some rebound in Q1 and we are also targeting continued growth in Q2. Now to comment on our direction of strategy, we are continuing our effort towards sustainable profitability and being the preferred foundry provider in China as we continued partnering with international and the domestic partners. In order to achieve this, our long-term strategy is to maintain our technology advancements as well as to pursue value added differentiation. Our near-term strategy is to work on boosting the overall fab utilization and the efficiency. Based on market sizing, growth and margin trend, as well as our potential capability and resource, we have identified a few niche product lines which we aim to strengthen our unique value propositions.
In some of these segments, we offer unique solutions, technology and the IPs in order to enable our customers to excel in these respective markets. We have strengthened our product marketing group in order to more efficiently and effectively length the market customer requirements with our internal technology development and IP development functions.The product marketing teams responsibility to quickly and accurately discern market trend and to identify strategies to offer differentiated solution to support our customers. With closer partnership with customers and initiatives to boost fab utilization, our Shanghai 8-inch fab loading is now fairly satisfactory and our Beijing fab utilization is also improving. We are also working diligently with our partners to ensure that loading improvement propagates through our other fabs. Operationally, we continue to emphasize production improvement and customer service. To maintain stable yield and competitive cycle time for the purpose of customer satisfaction we have also instituted comprehensive systems and controls as well as continuous operational improvement activities on a daily basis. As a result, positive customer feedback is a testament to our strengthened team and improved performance and operation. In 4Q 2011, a leading customer ranked our Shanghai fab the number one 8-inch fab amongst all of its foundry suppliers. Another leading customer awarded us for excellent track record of support for their power management processor after achieving over 1 billion unit shipment of power management processors with outstanding delivery record over the past year. Our Beijing fab is a 65 nanometer service continued to improve on both cycle time and defect density. In 4Q 65 nano contributed 21% of our wafer revenue and we hope to continue to grow our 65 nano business to high 20s at the end of the 2012. As our 65 nano utilization in our Beijing fab rise from increasing customers demand. Total new table grew 8.7% in 2011 compared to 2010 with the increase mainly from 65 nano and below with key growth driver from mobile and tablet application. Read the rest of this transcript for free on seekingalpha.com