TSMC's Challenger Hua Hong Banks USD 225.4 Mn in Revenue in 2Q 2020

Technology Author: Dixuan Lu Editor: Luke Sheehan Aug 11, 2020 07:51 PM (GMT+8)

Up by 11.1% quarter-over-quarter.

Image credit: Hua Hong Semiconductor's official website

Chinese foundry Hua Hong Semiconductor (01347:HK), the mainland's second-largest foundry, which trails only SMIC (688981:SH, 00981:HK) achieved a revenue of USD 225.4 million in the three months up to and including June 2020. 

Over this period, the gross profit margin of the firm was 26%, a year-on-year decrease of 5%, but 4.9% higher than that in the last quarter.

The company's profits are currently driven by the growing demand for microcontrollers, CMOS image sensors and IGBTs.

With the announcement, the company also predicted that the 3Q 2020 revenues will be around USD 236 million, with the gross profit margin somewhere between 22% and 24%.

The chipmaker's recovery from the COVID-19-triggered crisis somewhat speaks for the entire Chinese economy. Much like those of other foundries, its financial results indicate the state of local business activity.