Shaoxing SMIC launches IPO, with SMIC as the second largest shareholder

According to documents disclosed on the official website of the Zhejiang Securities Regulatory Bureau, Shaoxing SMIC (SMIC) plans to go to the A-share IPO, and Haitong Securities will serve as a tutoring agency. The tutoring period is roughly from July to October 2021.

The data is that, Shaoxing SMIC is based on micro-electromechanical (MEMS) and power device (Power) process technology, focusing on the characteristic semiconductor system foundry services of sensing, connection and power. Starting from foundry, the company extends down to system modules and up to design services. Shaoxing SMIC has no controlling shareholder and actual controller, and SMIC is the second shareholder of Shaoxing SMIC with a shareholding ratio of 19.57%.

Shaoxing SMIC has conducted three financings. The first equity financing was in November 2019. The investors were Xingcheng Capital, SMIC Juyuan, and SMIC. The other two financings were in September and December 2020 respectively. A group of investors include Aixiang Investment, Fude Ventures, Shanghai Nano Ventures, TCL Ventures, SoftBank China Capital, Hu Yanglin Capital, Shenzhen Venture Capital and CMB International Capital.

Shaoxing SMIC was jointly established by SMIC and Shaoxing State-owned Assets in 2018. According to public information, on March 1, 2018, SMIC, Shaoxing Municipal Government, and Shengyang Group jointly funded the establishment of SMIC Integrated Circuit Manufacturing (Shaoxing) Co., Ltd., marking the formalization of SMIC’s MEMS and power device industrialization project Landed in Shaoxing. The total investment of the joint venture project signed this time is 5.88 billion yuan. It is oriented to the field of micro-electromechanical and power device integrated circuits, focusing on wafer and module foundry, continuing to invest in R&D and industrialization, and will build and form a comprehensive The characteristic craft base, quickly occupy the leading position in the domestic market.

Not long ago, Zhejiang Daily reported that the SMIC Shaoxing project located in Shaoxing, Zhejiang has successfully completed the debugging of the wafer equipment chain. The monthly production capacity of 8-inch wafers will increase to 70,000 pieces, and the yield rate is as high as 99%. This means that the production capacity of domestic chips will be greatly improved, which can effectively alleviate the shortage of chips in the market.

In fact, as one of the major shareholders of Shaoxing SMIC, SMIC has started to expand production several times in recent years. In addition to the SMIC Shaoxing project in 2018, the company also established a joint venture with the second phase of the National Integrated Circuit Fund at the end of last year. The registered capital of the joint venture is US$5 billion, and its business scope includes the production of 12-inch integrated circuits. Wafer and integrated circuit packaging series; in March 2021, the company and the Shenzhen government plan to jointly fund the establishment of Shenzhen SMIC, focusing on the production of 28nm and above integrated circuits and the provision of technical services, aiming to achieve a final monthly 40,000 12-inch chips wafer capacity.

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