China’s SMIC raises revenue expectations following strong Q1 as chip shortage boosts demand

SHANGHAI: China’s Semiconductor Manufacturing International Corp (SMIC) said on Friday that demand for chips exceeds supply, and raised its expectations for sales for the first half of the year.

“Our current capacity could not fulfill customer needs, and products in every market segment faced shortages,” Zhao Haijun, co-chief executive of SMIC, said in a company earnings call.

SMIC reported sales of $1.1 billion in Q1 2021, a year-on-year increase of 22%, and gross profit reached $250 million, a 7.1% increase.