Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
?
EE Times-Asia > Memory/Storage
?
?
Memory/Storage??

Equipment delays force SMIC to trim Q3 guidance

Posted: 27 Sep 2005 ?? ?Print Version ?Bookmark and Share

Keywords:dram? wafer?

Shanghai foundry Semiconductor Mfg Int. Corp. has reduced its estimates for wafer shipments and average selling prices in the third quarter due to delays in getting semiconductor manufacturing equipment installed. The company also said it is being affected by the low prices it can charge for DRAM products.

As a result of extended lead times for receiving and installing equipment, SMIC now expects its capital expenditure in the third quarter to be between $120 million and $160 million in contrast to $200 million to $240 million, which the company quoted in guidance issued on July 29, when the company announced its second quarter financial results.

The company said Friday (Sept. 23) it expects Q3 wafer shipments to increase by 6 percent to 7 percent sequentially and the blended average selling price to increase by 3 percent to 5 percent sequentially. This compares with the prediction that Q3 wafer shipments would increase between 7.5 percent and 9.5 percent sequentially and that the blended average selling prices in the third quarter would be between 8 percent and 10 percent higher, which SMIC made July 29.

SMIC made $279.5 million revenue in the second quarter and the company's latest guidance implies Q3 revenues in the range $305 million to $315 million. The previous guidance suggested Q3 revenues in the range $324 million to $337 million.

"The primary reasons for the updated guidance are that (i) due to longer equipment lead-times, the installation and qualification of equipment for advanced technology nodes, originally scheduled for the third quarter, have been scheduled for the fourth quarter and (ii) lower average selling price for DRAM products, resulting in an increased inventory charge," SMIC said in a statement.

The company re-iterated that manufacturing capacity utilization would be between 90 percent and 93 percent in the third quarter and that operating expenses as a percentage of sales would be in the mid-teens.

- Peter Clarke

EE Times





Article Comments - Equipment delays force SMIC to trim ...
Comments:??
*? You can enter [0] more charecters.
*Verify code:
?
?
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

?
?
Back to Top