2 days ago
- Business
- South China Morning Post
China's top chipmaker SMIC offloads stake in Ningbo affiliate to focus on core operations
Semiconductor Manufacturing International Corp (SMIC), mainland China's largest contract chipmaker, has divested its entire stake in an unprofitable chip foundry operation amid a new wave of consolidation in the domestic integrated circuit (IC) industry.
Shanghai -based SMIC agreed to sell its 14.83 per cent stake in Ningbo Semiconductor International (NSI) for 57.01 yuan (US$7.94) per share to semiconductor design firm Goke Microelectronics , according to the chipmaker's filing on Thursday. The deal's total amount was not disclosed.
'This transaction will help the company focus on its core business,' SMIC said in the filing.
A separate filing on Friday by
Shenzhen -listed Goke Microelectronics revealed the firm's plan to buy more shares in NSI – headquartered in Ningbo, eastern
Zhejiang province – from 10 other stakeholders to raise its stake to 94.37 per cent, using a combination of cash and shares. The stakeholders include the
China Integrated Circuit Industry Investment Fund , also known as the 'Big Fund'.
The
Hong Kong -listed shares of SMIC fell 4.9 per cent to HK$40.20 (US$5.12) on Friday, while its stock in Shanghai gained 0.2 per cent to 84.56 yuan. Goke Microelectronics' shares in Shenzhen rose 5.5 per cent to close at 85.50 yuan.
SMIC's asset sale and Goke Microelectronics acquisition reflect efforts by domestic semiconductor firms to strengthen their operations in response to the US government's
tightened tech restrictions on China
