China injects US$2.2 billion into local chip maker SMIC
The investment comes as Washington restricts the ability of telecoms gear maker Huawei to develop chips using American technologies. SMIC, mainland China’s biggest chip maker, plans a share sale in Shanghai that could raise more than US$3 billion
China’s state-backed funds pumped US$2.25 billion into a wafer plant by Semiconductor Manufacturing International Corp (SMIC) to support advanced chip making, as Washington tightens technology restrictions on the world’s second largest economy.
The SMIC plant’s registered capital jumps from US$3.5 billion to US$6.5 billion after the investment, the company said in an announcement on Friday.
The Hong Kong-listed chip maker’s stake in the Shanghai facility will drop from 50.1 per cent to 38.5 per cent, according to the company, which is mainland China’s largest semiconductor foundry.
The plant has capacity to produce 6,000 14-nanometre wafers a month and plans to boost that to 35,000.
The new investment came as Washington moved to prevent sales to Huawei Technologies by chip makers using US technology.
The Commerce Department on Friday said it would require licences before allowing US technology to be used by Huawei or its 114 subsidiaries, including its chip design unit HiSilicon.
SMIC is planning a Shanghai share sale that could raise more than US$3 billion, based on its closing value of more than US$13 billion on Friday. China is betting the local chip foundry can help reduce the country’s reliance on US technology.
The SMIC plant’s registered capital jumps from US$3.5 billion to US$6.5 billion after the investment, the company said in an announcement on Friday.
The Hong Kong-listed chip maker’s stake in the Shanghai facility will drop from 50.1 per cent to 38.5 per cent, according to the company, which is mainland China’s largest semiconductor foundry.
The plant has capacity to produce 6,000 14-nanometre wafers a month and plans to boost that to 35,000.
The new investment came as Washington moved to prevent sales to Huawei Technologies by chip makers using US technology.
The Commerce Department on Friday said it would require licences before allowing US technology to be used by Huawei or its 114 subsidiaries, including its chip design unit HiSilicon.
SMIC is planning a Shanghai share sale that could raise more than US$3 billion, based on its closing value of more than US$13 billion on Friday. China is betting the local chip foundry can help reduce the country’s reliance on US technology.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
