On the evening of May 15, Hong Kong stock company SMIC Internationaluff08 0981.HK uff09According to the announcement, a new round of capital increase and share expansion has been carried out for SMIC south, an indirect holding company. The state integrated circuit fund phase II and Shanghai integrated circuit fund phase II will respectively invest US $1.5 billion and US $1.5 billion Seven point five US $100 million - Total twenty-two point five Billion US dollars (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.
Zhongxin Internationals Shanghai wafer factory received US $2.25 billion in capital increase
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 the equity of SMIC south to SMIC holdings for a price of $155 million. Upon completion of relevant transfer, SMIC international will hold 50.1% of the equity of SMIC south through SMIC holdings.
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.
According to the development plan of SMIC at that time, the 12 inch wafer factory will be built by the state integrated circuit fund, the state integrated circuit Fund II, the Shanghai integrated circuit fund and the Shanghai integrated circuit Fund II as joint venture partners, while SMIC will speed up the introduction of advanced manufacturing processes and products. Most of the capital injection will be used as capital expenditure according to the development plan, and enable the company to develop high-end and fast-growing product flow, which will bring more growth opportunities for the company and is necessary to maintain the competitiveness of the group.
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.
In terms of fund-raising purposes, about 40% of the fund is invested in the 12 inch chip SN1 project, 20% is used as the reserve fund for the companys advanced and mature process research and development projects, and the other 40% is used to supplement the working capital.
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 companys single quarter operating revenue reached US $905 million, up 7.8% on a month on month basis, up 35.3% on a year-on-year basis, a record high quarterly operating revenue; the net profit attributable to the parent company was US $64.164 million, down 27.7% on a month on month basis, up 422.8% on a year-on-year basis.
Source: China responsible editor of securities company: Guo Chenqi, nbj9931