Leading Chinese chipmaker Semiconductor Manufacturing International Corporation (SMIC) announced on Tuesday that in January and February 2022, the company achieved operating income of about $1.223 billion, a year-on-year increase of 59.1%, while the net profit attributable to shareholders was about $309 million, up 94.9% year-on-year.

Previously, more than 600 institutional and individual investors participated in the performance briefing for the fourth quarter of 2021 held on February 11. At the briefing, Gao Yonggang, acting chairman of SMIC, revealed his outlook for 2022.

The key task of SMIC this year is to keep up with industrial development trends, dynamically balance existing and potential demand, and make up for the structural gap of the industrial chain.

Gao said that the company expects its annual sales revenue growth rate this year to be better than the semiconductor industry average, and its gross profit margin to be higher than 2021. In order to promote the expansion of existing factories and to build three new plants, the firm’s capital expenditure is estimated to be about $5 billion this year.

Zhao Haijun, CEO of SMIC, said that looking forward to 2022, smartphone and consumer products markets lack development momentum, and supply and demand will gradually reach a balance. There are still structural capacity gaps in markets such as the Internet of Things (IoT), electric vehicles and high-end integrated circuits. The demand for microcontrollers and power management products is still strong.

Research institutions are also confident in SMIC’s performance this year. According to Capital Securities’ report, the monthly production capacity of SMIC will increase by 130,000-150,000 units in 2022. In terms of sales strategy, the company will give priority to binding leading customers and the most promising customers to ensure the long-term steady growth. The company expects revenue in the first quarter this year to increase by 15%-17% month-on-month, and the gross profit margin is expected to be about 36%-38% in the same period.