SMIC: automotive chips and discrete devices account for a relatively small proportion in the contract manufacturing industry, and no other industry can supplement the decline in demand for mobile phones.

CTOnews.com November 16 news, according to SMIC's investor relations activity records disclosed yesterday, at the performance presentation held on November 11, SMIC said that the chips and discrete devices used in the automotive industry account for a relatively small proportion in the contract manufacturing industry, and it is impossible to rely on this increment to support the expansion and production scale of the industry.

SMIC pointed out that the next recovery depends on the biggest recovery in demand for goods, with mobile phones accounting for almost half of contract manufacturing, and no other industry can supplement the decline in demand for mobile phones. New applications include energy storage, inverters, etc., from never to have, is a net increment. This kind of chip has very high quality requirements, and it takes a lot of effort to cooperate with terminal users to meet the requirements of this market.

CTOnews.com learned that when it comes to fourth-quarter capacity utilization, SMIC said there are no exact figures for fourth-quarter capacity utilization, but it is certainly lower than the 92 per cent in the third quarter.

In terms of talent reserve, SMIC said that this year's talent reserve is very good, and the turnover rate has decreased. In addition, this year's graduates attach great importance to semiconductors, and the source of students is very good. The company has more than 20,000 employees this year.

With regard to the 340,000 pieces of production capacity to be expanded in the future, SMIC revealed that at present, about 70% of the company's production capacity is related to Chinese customers and the Chinese market, and about 30% is overseas, and the future incremental market mainly meets market demand, rather than by region. In the future, the new factory at least 1amp 3 is a shared production capacity to meet the dynamic needs of customers; 2Compact 3 is aimed at specific market segments and technical iterations, for example, some factories face the needs of China's panel industry, some factories focus on analog circuits (Analog Power), some factories specialize in CIS, etc., each has its own focus.

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