SMIC board approves transaction, A shares to resume trading September 9

SMIC board approves transaction, A shares to resume trading September 9

The Semiconductor Manufacturing International Corporation (SMIC) board has approved the company's plan to acquire full ownership of its subsidiary, Semiconductor Manufacturing North China (Beijing) Corporation (SMNC). This move comes as part of ongoing consolidation efforts within China's semiconductor industry [1].

SMIC currently owns 51% of SMNC, with the remaining equity stake held by state-owned investors. The acquisition will involve additional state-owned investors, including the China Integrated Circuit Industry Investment Fund, Beijing Semiconductor Manufacturing and Equipment Equity Investment Centre, Beijing E-Town International Investment & Development, and Zhongguancun Development Group. The transaction is still in its preliminary stages, with certain elements being negotiated [1].

Following the announcement, SMIC's shares listed in Shanghai were suspended for a maximum of ten trading days. However, the company has since indicated that A shares will resume trading on September 9 [1].

SMNC, founded in June 2013, focuses on manufacturing capabilities for 45 nanometer and smaller technologies, aiming for a monthly capacity of 35,000 wafers. In 2021, SMNC reported operating revenue of $1.51 billion and a net profit of $314 million [1].

In the first half of 2025, SMNC and another SMIC subsidiary, Semiconductor Manufacturing Beijing Corporation (SMBC), collectively generated revenue of 8.87 billion yuan ($1.24 billion) and a combined net profit of 125 million yuan [1].

SMIC's first-half 2025 revenue increased by 22% year-on-year, reaching nearly $4.46 billion, while net profit surged by 35.6% to $320 million [1].

The acquisition of SMNC aligns with SMIC's strategy to strengthen its position in the competitive semiconductor market, particularly in the face of geopolitical tensions and export control measures [1].

References:
[1] https://www.verdict.co.uk/news/smic-acquire-full-ownership-subsidiary/