Semiconductor Manufacturing International Corporation (SMIC) has reported net losses of US$482.3 million for the fourth quarter of 2009 compared to losses of US$124.5 million a year ago and losses of US$69.3 million in third-quarter 2009.

SMIC revealed that it recognized charges totaling US$438.8 million in the fourth quarter, which included US$299.7 million related to the settlement of litigation with Taiwan Semiconductor Manufacturing Company (TSMC). It settled a dispute regarding trade secrets with the Taiwan-based rival in November 2009.

Despite the profit drop, SMIC said revenues grew 3% sequentially and 22.2% on year to US$333.1 million in the fourth quarter. Gross margin for the quarter improved to 10.6% compared to 0.8% in the third quarter, primarily thanks to wafer shipment and utilization growth.

SMIC noted the China market contributed 21% to its fourth-quarter revenues, and sales from China increased 7% on quarter and 23.6% on year. Greater China accounted for 38.1% of SMIC's total revenues for thefourth quarter.

SMIC also said sales from 0.13-micron and below technologies grew by 12.9% on quarter in the fourth quarter.

Looking into the first quarter, SMIC expects revenues to remain flat or increase 2% from levels in fourth-quarter 2009.

SMIC CEO David NK Wang commented that 2010 looks to be a good year for the semiconductor industry. "We believe it will also be an important step on our journey toward sustained profitability," he said.

In other news, SMIC has announced a number of senior management changes. In addition to COO Simon Yang, who previously worked as senior VP of fab operations and CTO at Chartered Semiconductor Manufacturing, SMIC has named Chris Chi, formerly a consultant for C-Square Consulting, as its new chief business officer. It also hired Gary Tseng, who previously worked as COO at China Solar, as CFO of SMIC.