SMIC received $2.5 billion in government subsidies last year, accounting for nearly 60% of net income

The Chinese Communist government provides large amounts of government subsidies to semiconductor companies, and SMIC, for example, received nearly 2.5 billion yuan in government subsidies last year, accounting for 57.5% of its net profit last year.

According to Jiwei.com on May 8, 119 of China’s 120 A-share semiconductor companies received government subsidies last year, amounting to RMB 14.911 billion, accounting for 26.1% of A-share semiconductor companies’ net profits of RMB 57 billion last year.

From the point of view of subsidy amount, China CNT received government subsidy funds of 2.727 billion yuan, SMIC received 2.489 billion yuan, BYD received 1.678 billion yuan, and Woodland received 1.034 billion yuan, all more than 1 billion yuan, ranking the top four; the companies ranked fifth to tenth were Sanan Optoelectronics, Huachan Optoelectronics, North Huachuang, China Ring, China Science and Technology Shuguang, and China Micro Corporation, receiving subsidy Funds were 681 million yuan, 510 million yuan, 400 million yuan, 349 million yuan, 292 million yuan, 253 million yuan. The above 10 companies together received government subsidies amounting to 10.415 billion yuan, accounting for 69.85% of the total.

In terms of the range of subsidy amount, there are 4 companies that exceed 1 billion yuan, accounting for 3.33%; 23 companies in the range of 1 to 1 billion yuan (inclusive), accounting for 19.17%; 66 companies in the range of 0.1 to 100 million yuan (inclusive), accounting for 55%; 27 companies under 0.1 billion yuan, accounting for 22.5%.

According to the report, many semiconductor companies rely on government subsidies to “beautify” their earnings, to China’s largest foundry SMIC, for example, last year’s net profit of 4.332 billion yuan, government subsidies of 2.489 billion yuan, accounting for 57.5% of its net profit; BYD last year’s net profit of 4.234 billion yuan, government subsidies of 1.678 billion yuan The government subsidies accounted for 39.6% of its net profit; three Ann photoelectric net profit of 1.016 billion yuan last year, government subsidies of 681 million yuan, accounting for 67% of its net profit.

And some companies, even if the government subsidies, there are still losses. For example, Woodland last year’s net profit of 302 million yuan, minus government subsidies of 1.034 billion yuan, a loss of 732 million yuan; Huachan photoelectric last year’s net profit of 0.18 billion yuan, minus government subsidies of 510 million yuan, a loss of 492 million yuan. In addition, Cambium, Dinglong, Datang Telecom, VeriSilicon, Nationz Technologies, Youfang Technology, Yuanwang Valley, Xiaocheng Technology and other companies received government subsidy funds, its net profit also showed a loss.