China's Largest Semiconductor Foundry Raising $6.55 Billion or More in Funding
takyon writes:
SMIC, the operator of the largest semiconductor foundry in China, has adopted a pivotal role in the ongoing multi-faceted spat between the U.S. and China. The company has become the focal point of a concerted effort by Beijing to maintain a continuous supply of semiconductors to the local industry even as Washington tries to thwart this flow, as evidenced by the Trump administration's efforts to block silicon heavyweights around the globe from delivering semiconductor components to Huawei or its affiliate HiSilicon.
Nonetheless, SMIC appears ready to deploy its added heft in order to secure economic gains. As an illustration, in a filing with the Shanghai Stock Exchange on Sunday, the company revealed that it will raise as much as 46.29 billion yuan or $6.55 billion by selling new shares on the exchange at a price of 27.46 yuan per share. Interestingly, the latest financing target is more than double the 20 billion yuan that SMIC originally sought to raise.
[...] As stated earlier, leading Chinese tech enterprise have been subjected to a relentless volley by Washington over the recent months as the multifaceted spat between the U.S. and China continues to escalate. Back in May, the U.S. banned the export of any semiconductor that incorporated American technology to Huawei or its affiliate, HiSilicon. Given these evolving dynamics, Huawei is now increasingly relying upon the silicon components sourced from SMIC for the wide range of its products.
See also: How much trouble is Huawei in?
Intel resumes shipment to Chinese server maker Inspur
Huawei builds up 2-year reserve of 'most essential' US chips
Previously: China Lags Behind Other Countries in Semiconductor Manufacturing
China's SMIC Produces its First "14nm" FinFET Chips
Semiconductor Manufacturing International Corporation (SMIC) Starts "14nm" FinFET Volume Production
How China Plans to Lead the Computer Chip Industry
TSMC Dumps Huawei
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