Semiconductor Manufacturing International Corporation (SMIC) has announced its financial results for the second quarter of 2024, reporting a sales revenue of $1.9013 billion, an 8.7% increase from the previous quarter and a 21.9% rise year-over-year. The gross profit reached $265 million, marking a 10.6% increase quarter-on-quarter, though it reflects a 16.2% decrease compared to the same period last year. The gross margin for the quarter was 13.9%, up by 0.2 percentage points QoQ but down by 6.4 percentage points YoY.

SMIC's management noted that the sales revenue and gross margin for the second quarter exceeded guidance. The utilization rate of capacity continued to climb to 85.2%. The company sold 2.111.88 million 8-inch equivalent wafers, an 18% increase QoQ and a significant 50.5% increase YoY. The average selling price per unit declined by 8% QoQ due to changes in the product mix.

Notably, consumer electronics replaced smartphones as the largest revenue source, contributing 35.6% to the total revenue, a 4.7 percentage points increase QoQ and a 9.1 percentage points increase YoY. Smartphones accounted for the second-largest revenue contribution at 32%, followed by computers and tablets, IoT and wearables, and industrial and automotive applications at 13.3%, 11%, and 8.1% respectively.

Looking ahead to the third quarter, SMIC anticipates a sequential revenue growth of 13%-15% and expects the gross margin to be within the range of 18%-20%. The company's strategic focus on consumer electronics and other applications is expected to drive further growth in the coming months.