Chinese chip foundry company Semiconductor Manufacturing International Corp. (SMIC) posted triple-digit growth in net profits in the first quarter of 2020 in sharp contrast to the coronavirus-induced downturn seen by many other companies across various industries.

During the January-March period, the contract chipmaker’s net profits amounted to $64.2 million, representing a year-on-year growth of 422.8%, according to the company’s earnings report released Wednesday.

Quarterly revenue reached a record high of $904.9 million, up 35.3% from a year earlier, the company said. SMIC Co-Chief Executive Officers Zhao Haijun and Liang Mong Song attributed the revenue growth to better-than-expected market demand and changes to the product mix.

SMIC also said that it expects its second-quarter revenue to increase by 3% to 5% from a quarter earlier.

Some industry insiders are bullish about the future of Shanghai-based SMIC as Huawei is reportedly shifting the production of its self-designed chips to SMIC from Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), which itself saw its first-quarter net profit jump 90.6% year-on-year to $3.89 billion.

Hong Kong-listed SMIC is mulling a listing on Shanghai’s Nasdaq-like STAR Market, with plans to use the majority of the capital raised to build a new manufacturing facility for 12-inch chips and develop advanced technologies.

Contact reporter Ding Yi (yiding@caixin.com)

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