Chinese contract chipmaker Semiconductor Manufacturing International Corp. (SMIC) has filed for a listing on Shanghai’s Nasdaq-style high-tech STAR Market, hoping to raise 20 billion yuan ($2.8 billion), according to a stock filing on the bourse’s website.

The move comes as SMIC primes to take more orders from embattled tech giant Huawei, which has been targeted by new U.S. sanctions barring it from buying semiconductors built with American chipmaking technology.

SMIC will issue no more than 1.69 billion shares on the STAR Market and will use the proceeds to develop 12-inch chips, supplement working capital, and bankroll the research and development of advanced technologies, it said in a listing prospectus released Monday.

The Chinese government has supported SMIC as part of efforts to build future global leaders in the semiconductors sector. Similarly, it has also backed other high-tech industries like artificial intelligence and information technology.

Last month, the company received a combined $2.25 billion in investments from two state-owned funds, which will be used to boost chip production at its Shanghai plant.

According to its latest earnings report, SMIC more than quadrupled its net profits to $64.2 million in the first quarter of 2020. The company attributed the growth to robust market demand and changes to its product mix.

Contact reporter Ding Yi (yiding@caixin.com)

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