- SMIC will look to issue no more than 1.69 billion shares on the STAR market
- 40 per cent of the capital raised will be used to build a new manufacturing plant for 12-inch chips
As per a report by Caixinglobal, Chinese chip maker Semiconductor Manufacturing International Corp (SMIC) said that its board of directors has approved plans for a listing on Shanghai’s STAR market. The report added that as per a filing to the Hong Kong Stock Exchange, SMIC will look to issue no more than 1.69 billion shares on the STAR market.
The report added that the filing further said that about 40 per cent of the capital raised will be used to build a new manufacturing plant for 12-inch chips. Another 40 per cent will be used as additional working capital. The remaining will be allocated to reserves for the research and development of advanced technologies.
Went public in Hong Kong and New York in March 2004
The report added that SMIC went public in Hong Kong and New York in March 2004. Last year, in May, the company had applied for voluntary delisting from the New York Stock Exchange.
Recently, HiSilicon, Huawei chip design, and the manufacturing unit had started redirecting some of its engineers towards designing for SMIC instead of Taiwan Semiconductor Manufacturing Co Ltd (TSMC). A recent report by Reuters also pointed out that Huawei is moving its chip-making operations towards a China-based firm. This firm is manufacturing chips that Huawei has designed in-house.