(Yicai Global) May 14 -- Semiconductor Manufacturing International Corporation increased its profit two and a half times in the first quarter amid a worldwide chip shortfall. China’s biggest chipmaker also raised its first-half sales estimate, but warned about risks and uncertainties ahead.

Net profit jumped to CNY1.03 billion (USD158.9 million) in the three months ended March 31, the Shanghai-based company said in an earnings report released yesterday. Revenue climbed 22 percent to CNY7.3 billion (USD1.1 billion).

SMIC is building capacity to try to meet burgeoning demand for semiconductors used in smartphones, personal computers, game consoles and automobiles, but has not been able to keep up with demand.

The company’s capital expenditure was about CNY3.5 billion in the first quarter. It plans to spend CNY28.1 billion this year, mostly to expand capacity for mature process nodes, while a small share will go to advanced processes and new joint venture projects in Beijing.

This quarter, SMIC said revenue could gain 17 percent to 19 percent over the March quarter. Gross margins may hover in the range of 22 percent to 25 percent.

For the six months through June, revenue may be about CNY15.8 billion (USD2.5 billion), topping SMIC’s initial forecast, but the second-half outlook is less clear as the firm is restricted from buying US-made technologies after being added to the country’s so-called Entity List last December.

Global foundries are expanding production, but shortages will continue this year and may continue into next year, C. C. Wei, president of Taiwan Semiconductor Manufacturing, said in his company’s first-quarter earnings report.

SMIC's shares were little changed. In Shanghai today, its stock [SHA: 688981] ended at CNY55.86 (USD8.70), while its Hong Kong equity [HKG: 0981] finished at HKD23.75 (USD3.06).

Editor: Emmi Laine, Xiao Yi