Some time ago, the US Department of Commerce announced the export control of SMIC. After the news was released, many investors were worried. As a result, SMIC’s stock price fell rapidly.
After a period of evaluation, SMIC issued an announcement stating that some US equipment and raw materials were indeed affected, but the overall impact of export controls was limited.
It seems that export control does not have a huge impact on SMIC, because SMIC’s current customer demand is strong and orders are full.
Even in the agreement signed between SMIC and new customers, prices will increase, which shows that most customers have not completely abandoned SMIC due to export controls.
At present, the production capacity in the global foundry is extremely tight, so the export control of SMIC by the US Department of Commerce at that time made this situation worse. From the current news released by SMIC, SMIC’s current customer demand is also very strong, and SMIC is also full of orders.
It is exactly the same as SMIC revealed that it is also preparing to increase prices in response to strong demand. SMIC stated that it will negotiate with new customers and new projects to determine the latest prices.
At the same time, SMIC will increase the average wafer price by optimizing its product portfolio. This is the first time that SMIC has confirmed that it will increase the price of wafers.
SMIC also stated in answering investors’ questions that the company has not seen any obvious customer transfer orders so far, and the company will continue to meet customer needs.
Previously, there were rumors that because of the export control issues of the US Department of Commerce, Qualcomm and other companies planned to transfer SMIC orders to other foundries in order to avoid being affected. At present, 40% of Qualcomm’s 5G power management chips are foundry by SMIC.