Patrick Liao

Taiwan Tech Focused Senior Analyst

Actionable bottom-up long/short Insights on equities

Equity Bottom-Up

Semiconductor Manufacturing International Corporation operates a semiconductor foundry. The Company provides integrated circuit foundry and technology services including the testing, development, design, manufacturing, packaging, and sale of integrated circuits. Semiconductor Manufacturing International offers its products and services around the world.

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We think SMIC is likely to reach the high-end of 1Q22 guidance, which was US$1,817~1,849mn/36~38% respectively.
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We think SMIC is likely to reach ~US$1,926mn/39% for revenue/GM respectively in 2Q22.
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<li>SMIC cannot have the EUV machine because of the Wassenaar Arrangement. Therefore, SMIC has to optimize its operation and to expand 28nm and above technologies.</li>
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Semiconductor Manufacturing International Corp (SMIC)

SMIC (981.HK): 2Q22 Preview- We Estimate Around 5% Growth Could Be the Case