SMIC international invested US $2.55 billion

category:Finance
 SMIC international invested US $2.55 billion


SMIC holdings, national integrated circuit Fund II (hereinafter referred to as big fund phase II) and Yizhuang Guotou entered into a joint venture contract to jointly establish a joint venture. The registered capital of the joint venture is US $5 billion. SMIC holdings, big fund phase II and Yizhuang Guotou have agreed to contribute US $2.55 billion, US $1224.5 billion and US $1225.5 billion respectively, accounting for 51%, 24.49% and 24.51% of the registered capital of the joint venture, respectively. SMIC was established in 2015 as a wholly-owned subsidiary of SMIC international, mainly as an investment holding platform.

The reporter of securities times u00b7 e company learned that the above parties have been preparing for the establishment of the joint venture for a long time. On July 31, this year, SMIC signed and signed a cooperation framework agreement with the Management Committee of Beijing Economic and Technological Development Zone (hereinafter referred to as Beijing Development Zone Management Committee), and the two sides will establish a joint venture to engage in development and operation, focusing on the production of 28nm and above integrated circuit projects. The project will be constructed in two phases. The first phase of the project plans to achieve a 12 inch wafer production capacity of about 100000 pieces per month. The second phase project will be started timely according to customer and market demand. The first phase of the project is planned to invest 7.6 billion US dollars (about 53.1 billion yuan) and the registered capital is planned to be 5 billion US dollars, of which the companys contribution is planned to account for 51%.

Yizhuang Guotou, another participant, was founded in February 2009 as a wholly-owned subsidiary of the financial audit bureau of Beijing Economic and Technological Development Zone. As a state-owned investment company established by the industrial transformation and upgrading of Beijing Economic and Technological Development Zone, Yizhuang state investment can provide innovative financial services to meet the development needs of local enterprises. At present, Yizhuang Guotou also holds 5.75% equity of SMIC north.

Focus on integrated circuits above 28nm

SMIC believes that the establishment of a joint venture can meet the growing market and customer demand, help the company expand production scale, reduce production costs, and improve wafer foundry services, so as to promote the sustainable development of the company.

The establishment of the joint venture focuses on the production of 28nm and above IC projects. The reporter of securities times u00b7 e company noticed that the proportion of 14 / 28 nano wafer in the companys business is gradually increasing. The previous three quarterly reports disclosed that if classified by technology node: SMIC 14 / 28 nano wafer accounted for 14.6% of wafer revenue in the third quarter of 2020, an increase from 9.1% in the second quarter of this year, and 4.3% in the same period last year. 40 / 45 nm and 55 / 65 nm wafers accounted for 17.2% and 25.8% of wafer revenue in the third quarter, respectively. Commenting on the third quarter report, Dr. Zhao Haijun and Dr. Liang Mengsong, CEO of SMIC international, said that the demand for mature application platforms was as strong as ever, with significant growth in revenue related to power management, RF signal processing, fingerprint identification and image signal processing. Advanced technology application diversity, the companys first generation of advanced technology yield rate reached the industry level of mass production, the second generation into small volume trial production. The companys capacity has been steadily expanded, and the capacity utilization rate has remained high. Source: Securities Times editor in charge: Yang Bin_ NF4368

The establishment of the joint venture focuses on the production of 28nm and above IC projects. The reporter of securities times u00b7 e company noticed that the proportion of 14 / 28 nano wafer in the companys business is gradually increasing. The previous three quarterly reports disclosed that if classified by technology node: SMIC 14 / 28 nano wafer accounted for 14.6% of wafer revenue in the third quarter of 2020, an increase from 9.1% in the second quarter of this year, and 4.3% in the same period last year. 40 / 45 nm and 55 / 65 nm wafers accounted for 17.2% and 25.8% of wafer revenue in the third quarter, respectively.