SMIC international invested US $2.55 billion

category:Finance
 SMIC international invested US $2.55 billion


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%.

According to the announcement at that time, SMIC and Beijing Development Zone Management Committee will jointly promote other third-party investors to complete the remaining investment. Now the answer to the mystery is revealed, the third-party investors have finalized the second phase of large funds. The second phase of the big fund was registered and established in October 2019. Through equity investment, it mainly invests in the value chain of the integrated circuit industry, mainly including IC chip production, chip design, packaging test, equipment and materials. Large fund phase II holds 23.077% equity of SMIC Southern.

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

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.

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.