Semiconductor Manufacturing International Corp. (SMIC), China's largest chip foundry, named Haijun Zhao CEO Wednesday (May 10), succeeding Tzu-Yin Chiu, who had been the company's chief executive since 2011.
Zhao, who joined SMIC in 2010, is a 25-year semiconductor industry veteran who has been SMIC's chief operating officer since 2013.
"I am greatly honored to have the opportunity to lead the SMIC team at this exciting moment in our history," Zhao said in a press statement.
Chiu will continue with SMIC as a full-time advisor until June 30 to assist with the leadership transition, SMIC (Shanghai) said. Chiu will also remain vice chairman of SMIC's board of directors.
Also Wednesday, SMIC reported first quarter sales of $793.1 million, down 3 percent from the fourth quarter of 2016 but up 25 percent compared to the first quarter of 2016. The company also reported a net profit for the first quarter of $69.8 million, down 37 percent sequentially but up 14 percent year-over-year.
SMIC said it expects sales to decline by 3 to 6 percent sequentially in the second quarter.
SMIC is the the fourth largest pure-play foundry in the world with 2016 sales of $2.92 billion. Under Chiu's leadership, the company's sales more than doubled from $1.32 billion in 2011.
"It has been an honor to lead the team to transform SMIC over these past years," Chiu said. He added that he and the SMIC board are confident that now is the right time to transition leadership of the company and said Zhao has been "an invaluable leader" and is the right man to assume the role of CEO.