Huahong Semiconductor (01347) announced its 2023 annual results. Profit attributable to shareholders was US$280 million, a year-on-year decrease of 37.8%

Zhitong Finance ·  Mar 28 10:41

Huahong Semiconductor (01347) announced its annual results for the year ended December 31, 2023. Midsummer 2023...

According to the Zhitong Finance App, Huahong Semiconductor (01347) announced its annual results for the year ended December 31, 2023. In the midsummer of 2023, Huahong Semiconductor officially landed on the Science and Technology Innovation Board, promoted to the ranks of “A+H” listed companies, and is more closely tied to the capital market. Using this as an opportunity, we helped the company expand its 12-inch production line, strive for excellence in the 8-inch production line, and further research and development of characteristic process technology.

Facing serious challenges such as a slowdown in global economic growth, shrinking market demand, and rising raw materials and labor costs, during the reporting period, the company's sales revenue was US$2,286.1 billion, down 7.7% from 2022; overall gross margin also faced challenges, falling to 21.3%, a decrease of 12.8 percentage points from the previous year. Profit attributable to owners of parent companies was US$280 million, a year-on-year decrease of 37.8%. In a tough market environment, Huahong Semiconductor still maintains a tenacious development trend, actively adjusts its strategic layout, strengthens internal management, and increases investment in R&D, and strives to seek breakthroughs and accurately seize recovery opportunities in the face of adversity.

By the end of 2023, the company expanded its 8-inch monthly production capacity to 391,000 wafers, and shipped 4.103 million wafers throughout the year. Among them, Huahong Wuxi's monthly production capacity of 94,500 pieces has been fully released, and the IC process node covers 90 to 65/55 nanometers. It is not only the world's leading 12-inch specialty process production line, but also the world's first 12-inch power device OEM production line. In June 2023, the Huahong manufacturing project with an investment of 6.7 billion US dollars was launched, and a new 12-inch specialty process production line with a monthly production capacity of 83,000 pieces will be built. The project officially started in June, and the steel roof hoisting of the main plant was completed in December, recreating the “Huahong speed”. The release of production capacity at the manufacturing base in Wuxi will provide strong support for the improvement and development of the integrated circuit industry chain in the Yangtze River Delta region. At the same time, the company will continue to adhere to the development concept of “innovation-driven and technology-led”, take high-quality development as the main line, enhance the core competitiveness of the enterprise, and make greater contributions to the sustainable and healthy development of the integrated circuit industry in China and the world at large.

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