Chipmaker SMIC to Invest $3.655 Billion in Establishment of Joint Venture in Shanghai

smic
(Source: SMIC)

Chinese leading chipmaker Semiconductor Manufacturing International Corporation (SMIC) announced at the Hong Kong Stock Exchange on Friday that SMIC Holdings, National Integrated Circuit Industry Investment Fund Phase II and an investment institution under the Shanghai Lingang Area Development and Construction Administrative Committee have agreed to set up a joint venture (JV) in Shanghai.

The new JV’s business scope includes the production of 12-inch integrated circuit wafers, integrated circuit packaging, and integrated circuit-related technology design and development.

The announcement shows that the registered capital of Lingang Joint Venture Company is $5.5 billion. SMIC Holdings contributed 3.655 billion, while National Integrated Circuit Industry Investment Fund Phase II and another institution contributed $922 million and $923 million, respectively, accounting for 66.45%, 16.77% and 16.78%.

SMIC believes that by grasping the strategic opportunity for the development of integrated circuit industry in the Lingang New Area of Shanghai Free Trade Zone, the establishment of the new JV will meet the growing market and customer needs and help the company to expand its production scale, reduce production costs and improve wafer foundry services, thus promoting the sustainable development of SMIC.

In addition, SMIC announced on November 11 that Jiang Shangyi resigned as vice chairman, executive director and member of the strategic committee of the firm’s board of directors. Liang Mengsong ceased to serve as an executive director and continued to serve as the co-CEO of the company.

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