China’s most advanced fab SMIC plans to apply for domestic listing to accelerate 14nm process

China’s most advanced fab SMIC plans to apply for domestic listing to accelerate 14nm process

On the evening of May 5, SMIC suddenly announced that it would apply for listing on the domestic science and technology innovation board, issue 1.686 billion shares, and raise about 23.4 billion funds, mainly for 12-inch fabs and advanced process research and development.

SMIC is the largest and most advanced semiconductor fab in China. It officially mass-produced the 14nm process at the end of last year. Although it is a domestic company, SMIC is listed in Hong Kong. The current share price is 15.26 Hong Kong dollars, and the total market value is about 78.1 billion Hong Kong dollars.

SMIC was also listed in the United States in the form of ADR, but in May 2019, SMIC announced its withdrawal from the U.S. stock market.

It has been rumored that SMIC will be listed in China. Now it is officially announced that the board of directors has passed a resolution to approve the proposed issuance of RMB shares, the grant of special authorization and related matters, but it is subject to and limited by market conditions and shareholders’ approval at the special general meeting of shareholders. and necessary regulatory approvals.

According to SMIC’s report, the company will apply to the Shanghai Stock Exchange for a renminbi share issuance. After the Shanghai Stock Exchange has formed its review opinion, it will apply to the CSRC for the registration of the issuance of RMB shares.

After the issuance of RMB shares has been approved by the CSRC to be registered and the public offering of shares has been completed, the company will separately apply to the Shanghai Stock Exchange for approval of the listing and trading of RMB shares on the Science and Technology Innovation Board.

The RMB Shares will not be listed on the Hong Kong Stock Exchange.

The initial number of RMB shares to be issued in this listing shall not exceed 1.686 billion shares, accounting for no more than 25% of the total number of issued shares on December 31, 2019 and the total number of RMB shares to be issued this time .

An over-allotment option of not more than 15% of the number of RMB shares initially issued may be granted. All RMB shares will be new shares and will not involve the conversion of existing shares.

The stock price of RMB is the same as that of Hong Kong stocks. Based on the current stock price, the funds raised this time are about RMB 23.4 billion. After deducting the issuance expenses, the raised funds are planned to be used for the total investment required for the following projects in the following manner: about 40% will be used for investment In the 12-inch chip SN1 project; about 20% is used as reserve funds for the company’s advanced and mature process research and development projects; and about 40% is used as supplementary working capital.

The SMIC SN1 project is one of the two largest wafer fabs in Shanghai that cost US$10.2 billion to build. It is also the main source of SMIC’s 14nm and future advanced processes. The production capacity of the SN2 project is 35,000 wafers/ It will also be a production base for the most advanced technology of domestic processors in the future.

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