Key Takeaways:
Semiconductor Manufacturing International Corp. will face a critical review on May 11 for its proposal to acquire the remaining 49% stake in its key northern China manufacturing arm through a share issuance.
The planned acquisition was detailed in a company announcement, which confirmed the Shanghai Stock Exchange’s M&A and Restructuring Review Committee has scheduled the hearing for its fifth meeting of 2026. The review centers on the issuance of shares to purchase assets and the associated related-party transactions.
Under the proposal, SMIC plans to issue new shares to a consortium of state-backed entities to acquire their holdings in SMIC Northern Integrated Circuit Manufacturing (Beijing) Co., Ltd. The sellers include the National Integrated Circuit Industry Investment Fund, Beijing Integrated Circuit Manufacturing and Equipment Equity Investment Center, and several other Beijing-focused development and investment groups.
Approval of the deal would fully consolidate SMIC's ownership over the Beijing-based subsidiary, a strategic move to streamline control over one of its significant production facilities. For investors, the outcome of the May 11 review will be a key indicator of regulatory approval for SMIC's consolidation strategy and its continued alignment with state industrial policy.
The transaction represents a significant step for China's largest chipmaker to strengthen its corporate structure amid a global push for semiconductor self-sufficiency. By converting the minority stakes held by its government-backed partners into shares of the parent company, SMIC simplifies the ownership of one of its most important fabs. This move could enhance operational efficiency and streamline future investment decisions for the Beijing facility.
The entities selling their stakes are all major players in China's state-led push to build a domestic semiconductor industry. Their participation underscores the deal's alignment with national strategic goals. A successful transaction would likely be viewed as a positive signal of state support, potentially bolstering investor confidence in SMIC's long-term growth trajectory.
This article is for informational purposes only and does not constitute investment advice.
