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SMIC secures approval for $5.9 billion acquisition in China’s largest domesticwafer foundry M&A
SMIC has received approval for a $5.9 billion acquisition to fully own SMIC North, which is China's largest domestic wafer foundry M&A deal. The Shanghai Stock Exchange's M&A Review Committee confirmed the deal meets regulatory requirements. This transaction involves the acquisition of a 49% stake from five shareholders, enhancing SMIC's capabilities in 12-inch wafer fabrication services.
Key points
- SMIC announced a $5.9 billion acquisition approved by the Shanghai Stock Exchange M&A Review Committee.
- The acquisition is of a 49% equity stake in SMIC North, making it a wholly-owned subsidiary.
- SMIC North is a critical supplier of 12-inch wafer fabrication services.
- The deal reflects increasing consolidation in China's wafer foundry industry and meets all regulatory requirements.
Why it matters
- This acquisition aligns with the ongoing trend of consolidation in the semiconductor industry as leaders aim to enhance production capabilities amidst global chip demand.
- The move reflects China's strategic push for self-sufficiency in semiconductor manufacturing, aligning with national policies aimed at boosting the domestic semiconductor sector.
- It signals confidence in the long-term growth of semiconductor technology in light of the increasing reliance on advanced chips across industries leading up to 2025.
The strategic acquisition by SMIC underscores a significant shift in China's semiconductor landscape, enhancing its competitive edge in the global market and illustrating ongoing trends towards consolidation and self-sufficiency in technology sectors.