Overview

• In an HKEX filing, SMIC said it intends to acquire the remaining 49% of SMNC to reach full ownership, with specific terms and issue price still under negotiation.
• The sellers are state-backed investors including the China Integrated Circuit Industry Investment Fund, the Beijing Semiconductor Manufacturing and Equipment Equity Investment Centre, Beijing E‑Town International Investment & Development, and Zhongguancun Development Group.
• SMIC’s Shanghai-listed shares were suspended for up to 10 trading days, while its Hong Kong shares rose about 5%, closing near HK$63.65 after the disclosure.
• The plan aligns with broader consolidation in China’s foundry sector, as Hua Hong announced a deal to buy 97.5% of sister fab Shanghai Huali Microelectronics.
• SMIC is maintaining about $7 billion in 2025 capex after posting Q2 revenue around $2.2 billion and a 19.5% year-on-year profit decline to $146 million, with management warning tariffs and over-ordering cloud second-half cash-flow visibility.