Both SMIC and Amec are fastracked in their fund raising scheme. with money in the koffe thay should have no problem building FAB for 14 nm chip
China's top chip maker SMIC gets fast-track approval for US$2.82 billion fundraising plan to bolster capital in global tech war
Daniel Ren in Shanghai
[email protected]
June 19, 2020, 9:30 AM UTC
China has fast-tracked the process for the nation's largest chip maker on its domestic Nasdaq-style board, underpinning the state support for home-grown champions in the technology war with the US.
The Shanghai Stock Exchange on Friday approved a plan by Semiconductor Manufacturing International Corporation (SMIC) to raise 20 billion yuan (US$2.82 billion) on its fledgling Star Market to help develop a new chip and replenish capital.
The greenlight came 18 days after the company submitted its plan, making it the fastest approval process since the Shanghai exchange was established in 1990.
"It is of great significance to the Star Market because another domestic will get listed here," said Yin Zhiyao, founder and chief executive of chip maker Amec. "As a fundraising platform for technology companies, it will play a bigger role in supporting China's technological development."
Amec was among the first batch of debutants when the Star Market for technology companies was launched on July 22 last year. The board itself came to being at a record speed of about eight months at the behest of President Xi Jinping.
Beijing is looking to stay ahead in the technology race as the US steps up efforts to curb China's ascendancy in the industry, leading to a long-running spat covering trade, intellectual property and national security.
Those efforts included a new law barring chip makers using equipment produced by American companies from supplying parts to Chinese smartphone maker Huawei Technologies.
China itself has moved to offer tax breaks, ease stock market listing requirements and provide funding to home-grown chip producers to ensure the industry's self-sufficiency.
SMIC
from the New York Stock Exchange a year ago. Last month, it received US$2.25 billion of investments from several state-owned investors to bolster its capital.
"With the country's top chip maker becoming a member of the board, the Star Market is playing an increasing role in pushing ahead with China's technology advancement," said Ding Haifeng, a consultant with Shanghai-based financial advisory firm Integrity.
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