Chinese chip-maker SMIC seeks to raise $2.8b via Shanghai listing

Photo by Alexandre Debiève on Unsplash

Hong Kong-listed chip-maker Semiconductor Manufacturing International Corp aims to raise about 20 billion yuan ($2.8 billion) selling shares publicly in Shanghai, the company said in a prospectus on Monday.

The announcement comes as the Shanghai-headquartered company fattens its funding war chest amid broader tech-related tensions between the United States and China.

SMIC said the proceeds from the Chinese share sale will be used to fund projects and replenish operating capital.

Last month the company announced it received $2.2 billion in investments from Chinese state investors that will go to one of its plants.

Established in 2000, SMIC is mainland China’s top semiconductor foundry and the country’s rival to Taiwan-based Taiwan Semiconductor Manufacturing Company (TSMC).

The latter company produces best-in-class chips for a range of companies that include Apple, Qualcomm, and Huawei.

SMIC, meanwhile, remains less advanced than TSMC in its production capabilities.

Both TSMC and SMIC have found themselves caught in the U.S. Department of Commerce’s actions against Shenzhen-based smartphone maker Huawei Technologies.

Last month, the department expanded a restriction known as the Foreign Direct Product Rule to cover makers of semiconductor manufacturing equipment produced by U.S. companies. Experts say the move will likely affect both TSMC and SMIC‘s ability to provide chips to Huawei.

In its prospectus, SMIC referenced the Foreign Direct Product rule as a potential risk.

With the rule in place, “Certain semiconductor equipment and technologies imported from the United States may not be used to manufacture products for a number of customers before obtaining administrative approval from the United States Department of Commerce,” it said in the prospectus.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.