(Yicai Global) March 31 -- Chinese chip giant Semiconductor Manufacturing International, which more than doubled its net profit last year, intends to spend CNY32 billion (USD5 billion) this year to accelerate its capacity increase.

The manufacturer will upgrade its existing plants and invest in three new ones in 2022, the Shanghai-based company said in its annual earnings report published yesterday. The capacity addition will be bigger than that of 2021.

One of the new projects is located in the eastern city's Lingang New Area. It began construction this year. The two others in Beijing and Shenzhen are making steady progress to be finished by December, the firm added.

SMIC's net profit grew by 148 percent to CNY10.7 billion (USD1.7 billion) last year from a year earlier as its sales volume and prices surged. The firm had also optimized its product portfolio. Revenue tallied CNY35.6 billion, rising by almost 30 percent.

Wafer manufacturing made up more than 90 percent of annual revenue at CNY32.1 billion, climbing 34 percent from 2020. SMIC's sales volume rose 18 percent to 6.7 million wafers. The average selling price was CNY4,763 (USD750), up 13 percent.

The company's rivals are also increasing output amid the global chip shortage. Taiwan Semiconductor Manufacturing, the world’s largest wafer foundry, announced in January that it will spend between USD40 billion and USD44 billion to add capacity this year. The range was at a higher level than expected.

Leading global wafer manufacturers are predicted to splurge a historic high of USD107 billion on equipment-related expenditures this year, climbing by 18 percent from a year ago, according to a recent report issued by industry association Semi.

Last month, US chip titan Intel said it will acquire Israeli foundry Tower Semiconductor for USD5.4 billion in order to satisfy its constantly growing wafer demand.

SMIC's Hong Kong-listed stock price [HKG: 0981] was 1.4 percent down at HKD17.10 (USD2.18) at 3 pm. The shares are more than 30 percent down in the past 12 months.

The Shanghai-listed shares [SHA: 688981] slid 1.1 percent to CNY46.09 (USD7.27) at close. The equity price is trading more than 15 percent lower since last March.

Editors: Dou Shicong, Emmi Laine, Xiao Yi