On the evening of May 15, Hong Kong stock company SMIC International (0981. HK) announced that SMIC south, an indirect holding company, had a new round of capital increase and share expansion. The state integrated circuit fund phase II and Shanghai integrated circuit fund phase II will respectively invest US $1.5 billion and US $750 million - a total of US $2.25 billion (about 16 billion yuan). Through this capital increase and share expansion, the registered capital of SMIC South will increase from US $3.5 billion to US $6.5 billion.
SMIC International said that due to the expected rapid growth of market demand for advanced manufacturing processes, SMIC South aims to increase its production capacity from 6000 pieces per month to 35000 pieces, so as to meet the demand of IC wafer foundry production in the future.
In addition to the above-mentioned capital increase and share expansion, SMIC has also recently started the process of sprinting to the science and technology innovation board. On the evening of May 5, SMIC announced that it would apply for listing on the domestic science and technology innovation board, and it has started to provide listing guidance.
Tianyan data shows that before the capital increase and share expansion, SMIC Southern integrated circuit manufacturing Co., Ltd. had four shareholders in total: SMIC holding (45.67%) as the largest holding company; SMIC Investment Fund (27.04%) as the second largest shareholder; Shanghai integrated circuit industry investment fund (22.86%) as well as SMIC international The shareholding ratio of CIC Shanghai is 4.43%.
It is worth mentioning that SMIC holdings and SMIC Shanghai also signed a share transfer agreement on the 15th, and the latter agreed to transfer all their shares in SMIC south to SMIC holdings for a price one point five five Billion dollars. Upon completion of relevant transfer, SMIC international will hold SMIC south through SMIC Holdings 50.1% Equity.
Back to the capital increase and share expansion of SMIC south, through this capital increase and share expansion, the registered capital of SMIC South will be increased from 3.5 billion US dollars to 6.5 billion US dollars; the equity of SMIC South held by SMIC international through SMIC holdings will be reduced from 50.1% to 38.515%; SMIC South will be respectively funded by national integrated circuit fund, phase II of national integrated circuit fund, Shanghai integrated circuit fund and Shanghai integrated circuit fund The second phase of the circuit fund has 14.562%, 23.077%, 12.308% and 11.538% interests.
For the significance of this capital increase, SMIC International said that due to the expected rapid growth of market demand for advanced manufacturing processes, SMIC Souths goal is to increase its production capacity from 6000 pieces per month to 35000 pieces, so as to meet the demand of IC wafer foundry production in the future.
According to the public information, SMIC south is mainly engaged in IC chip manufacturing, pin test and bump manufacturing, and technology development, design service, photomask manufacturing, assembly and final test related to IC, focusing on process and manufacturing technology of 14nm and below.
In January 2018, SMIC South carried out a round of large-scale capital increase and share expansion. At that time, state integrated circuit fund and Shanghai integrated circuit fund respectively contributed 946.5 million US dollars and 800 million US dollars in cash, and SMIC holdings, a wholly-owned company of SMIC international, contributed 1543.5 million yuan, increasing the registered capital of SMIC south from 210 million US dollars to 3.5 billion US dollars.
In addition to the above-mentioned capital increase and share expansion, SMIC has also recently started the process of sprint to the science and technology innovation board. On the evening of May 5, SMIC announced that it would apply for listing on domestic science and technology innovation board and issue sixteen point eight six Billion shares, and the market generally expects that SMIC will raise more than 20 billion shares this time.
The reason for SMICs listing back to a is very clear, mainly through equity financing to enter Chinas capital market, while maintaining its international development strategy and improving its capital structure. In addition, it is in the overall interests of the company and its shareholders to go back to A-share listing, which is conducive to strengthening its sustainable development.
Only two days later, on the evening of May 7, information released on the official website of the Shanghai Securities Regulatory Bureau showed that SMIC had received guidance on listing. The tutors are Haitong Securities and CICC. Based on the fact that SMIC is already a Hong Kong listed company, and the counseling period of several science and Technology Innovation Board companies can be shortened to less than two months, SMIC will make a breakthrough in the journey of science and technology innovation board.
In April, Reuters reported that according to people familiar with the situation, Hisilicon semiconductor, Huaweis chip division, has required some engineers to design chips for SMIC rather than TSMC since the end of 2019. Now, Huawei is gradually transferring orders to SMIC to deal with more US restrictions.
SMIC is the largest and most advanced foundry in China. Its main business is to provide customers with 14 nm to 0.35 u03bc m wafer foundry and technical services. At present, SMIC is the only wafer foundry that can provide 14 nanometer process among domestic enterprises. However, it is worth mentioning that there is still a significant technical gap between the current strength of SMIC and large international enterprises such as TSMC and Samsung.
According to the first quarter report of 2020 released by SMIC on the evening of May 13, the company achieved operating revenue in a single quarter nine point zero five Billion US dollars, month on month growth 7.8% , year on year growth 35.3% The net profit attributable to the parent company is six thousand four hundred and sixteen point four USD 10000, down month on month 27.7% , year on year growth 422.8% u3002
Source: China responsible editor of securities company: Guo Chenqi, nbj9931