SMIC Buys Out Chip Unit For $5.8 Billion in Consolidation Push
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Semiconductor Manufacturing International Corp. (SMIC), China’s largest chipmaker, plans to acquire the remaining 49% stake in its Beijing subsidiary for 40.6 billion yuan ($5.8 billion) through a share issuance, consolidating control over a key production hub for mature-node chips.
According to a filing released on Tuesday, SMIC will issue approximately 547 million new shares at 74.2 yuan each to five minority shareholders. The sellers include the China Integrated Circuit Industry Investment Fund, known as the “Big Fund,” as well as investment vehicles backed by the Beijing municipal government. The transaction values the subsidiary, Semiconductor Manufacturing North China (Beijing) Corp., or SMNC, at nearly 82.9 billion yuan, representing a premium of roughly 98% over its book value.
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- SMIC will acquire the remaining 49% of its Beijing subsidiary for 40.6 billion yuan ($5.8 billion) via new shares, valuing it at nearly 82.9 billion yuan.
- The deal aids state-backed investors’ exit and reflects ongoing consolidation in China’s semiconductor sector, with M&A deals up 33% year-on-year in 2025.
- SMNC, focused on 65nm–24nm chips, reported 1.54 billion yuan profit in Jan–Aug 2025 and runs at 95.8% capacity utilization.
- Semiconductor Manufacturing International Corp.
- Semiconductor Manufacturing International Corp. (SMIC), China's largest chipmaker, plans to acquire the remaining 49% stake in its Beijing subsidiary for 40.6 billion yuan ($5.8 billion). This will consolidate control over a key production hub for mature-node chips. The move aligns with a broader recovery in its operations, driven by a capacity utilization rate of 95.8% in Q3 2025 due to domestic clients stocking up on inventory.
- Semiconductor Manufacturing North China (Beijing) Corp.
- Semiconductor Manufacturing North China (Beijing) Corp. (SMNC) is a subsidiary of SMIC, operating a 12-inch wafer fabrication plant specializing in mature-node chips (65-24nm). It employs over 2,500 people and has a monthly capacity exceeding 70,000 wafers. SMIC is acquiring the remaining 49% stake in SMNC for 40.6 billion yuan ($5.8 billion).
- Minsheng Securities Co. Ltd.
- Minsheng Securities Co. Ltd. is mentioned in the article as an analyst firm. They noted that the "Big Fund," a significant investor in SMNC, has passed its standard recovery period for its first phase, necessitating the withdrawal and recycling of state capital.
- Hua Hong Semiconductor Ltd.
- Hua Hong Semiconductor Ltd. (688347.SH) is mentioned as acquiring a controlling stake in its sister company, Shanghai Huali Microelectronics Co. Ltd. Corp. This move is part of a broader trend of consolidation within China's semiconductor sector, with listed companies acquiring unlisted assets to strengthen their supply chains.
- Shanghai Huali Microelectronics Co. Ltd. Corp.
- Shanghai Huali Microelectronics Co. Ltd. Corp. is a sister company to Hua Hong Semiconductor Ltd. In August, Hua Hong Semiconductor Ltd. announced plans to acquire a controlling stake in Shanghai Huali Microelectronics Co. Ltd. Corp.
- 2013：
- SMNC (Semiconductor Manufacturing North China (Beijing) Corp.) was established.
- 2016：
- The Big Fund entered the SMNC project, acquiring a stake.
- Q2 2022：
- SMIC's highest quarterly capacity utilization (at that point) before the rebound in 2025.
- First three quarters of 2025：
- Domestic semiconductor M&A deals surged 33% year-on-year to 93 deals.
- First eight months of 2025：
- SMNC reported a profit of 1.54 billion yuan.
- Q3 2025：
- SMIC reported a capacity utilization rate of 95.8%, highest since Q2 2022.
- August 2025：
- Hua Hong Semiconductor Ltd. announced plans to acquire a controlling stake in Shanghai Huali Microelectronics Co. Ltd.
- December 30, 2025：
- SMIC released a filing detailing its plan to acquire the remaining 49% stake in SMNC.
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