China's biggest chipmaker SMIC posts record 2022 revenue but warns of a tough year ahead

China's biggest chipmaker SMIC posted grounds gross successful 2022, contempt ongoing U.S. sanctions, but warned of a much hard twelvemonth up fixed a slump successful the semiconductor industry.

SMIC said connected Thursday that 2022 gross totaled $7.2 billion, up 34% year-on-year portion its gross borderline stood astatine a grounds 38%. That's the 2nd twelvemonth of income maturation supra 30% for the company.

However, SMIC said gross successful the archetypal 4th is forecast to alteration by betwixt 10% to 12% versus the December quarter.

"Looking guardant to 2023, successful the archetypal fractional of the year, the manufacture rhythm is inactive astatine the bottom, the interaction of outer uncertainties is inactive complex," the institution said successful a statement.

SMIC is 1 of China's astir important spot companies. It is the country's largest foundry, which is simply a institution that manufacturers chips that different firms design. It's a rival to the likes of Taiwan's TSMC and South Korea's Samsung but SMIC's exertion is respective generations behind.

The institution was thrown connected a U.S. commercialized blacklist called the Entity List successful 2020, which has cut SMIC disconnected from cardinal overseas technology that would let it to marque much precocious chips.

Demand for definite chips that spell into user products has slumped, specified arsenic memory, which has severely impacted SMIC arsenic good arsenic bigger firms similar Samsung.

SMIC has been investing aggressively to grow capableness successful China. The institution said its superior expenditures successful 2023 is expected to enactment astir the aforesaid arsenic the $6.35 cardinal it spent successful 2022.

SMIC said wide accumulation astatine 1 of its plants known arsenic SMIC Jingcheng volition beryllium postponed by one-to-two quarters owed to "the hold of bottleneck equipment."

The institution did not notation whether the caller sweeping U.S. export controls, which aim astatine cutting China disconnected from obtaining oregon manufacturing cardinal chips and components, was down the instrumentality delays.