China’s biggest chipmaker Semiconductor Manufacturing International Corp (SMIC) has reported record revenue growth in 2022, despite ongoing U.S. sanctions, according to CNBC.
The semiconductor manufacturer was able to mark a record year of revenue growth despite being hit with a sweeping set of restrictions by the U.S., denying SMIC and other blacklisted companies in China access to crucial foreign technology for producing advanced chips.
According to the CNBC report, the chipmaker posted revenue growth of 34% year on year, totalling $7.2 billion while its gross margin stood at a record 38%, marking the second year of sales growth above 30% for the company.
The company has continued to deliver promising results despite facing significant headwinds over the past year including softening demand for its products and services and being disadvantaged against competitors like TMSC and Samsung because of the U.S entity blacklist.
However, despite the record revenue growth in the previous year, SMIC warned of a more challenging year ahead given a slump in the semiconductor industry. According to the company, it expects its revenue for the first quarter of this year to slump by 10 to 12%.