SMIC seems to have a new $5.8 billion deal to elevate its growth in the chip industry. Well, this plan involves the chipset maker’s full control over the SMNC wafer unit. The company will now buy all of the stakes via a share issuance scheme.
A new filing appeared today showing that SMIC – one of China’s leading chip makers will acquire all the stakes of the SMNC wafer unit in a deal of $5.8 billion.
The SMNC (Semiconductor Manufacturing North China) is a Beijing-based subsidiary of SMIC. It focuses on advanced integrated circuits for mature nodes like 12nm and serves varied applications in computing and consumer electronics.
Earlier, the Semiconductor Manufacturing International Corporation (SMIC) held 51% stakes in its Beijing subsidiary. But now, the company is planning to buy the remaining 49% stake as well, assuming full control of the specific wafer unit.
Inputs reveal that SMIC is acquiring the remaining stake from five state-backed entities to make SMNC a fully-owned subsidiary. The deal is worth 40.6 billion yuan ($5.8 billion).
Besides, the company will execute the deal via the issuance of A-shares (worth 547.2 million) to five minority shareholders, such as China’s National Integrated Circuit Industry Investment Fund, and more.
SMIC believes that the new deal will help the company to improve its asset quality and support its long-term development. It also mentioned another subsidiary – SMSC. Perhaps the exiting shareholders and new investors will join SMSC, raising the registered capital from $6.5 billion to $10.1 billion.
(Image Credits: SMIC)
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