YICAI | SMIC Gets First Regulatory Nod for Largest M&A in China's Wafer Foundry Industry
(Yicai) May 12 -- Chinese chip giant Semiconductor Manufacturing International Corporation has received the first regulatory approval for the largest merger and acquisition deal in China's wafer foundry history.
The M&A and Reorganization Review Committee of the Shanghai Stock Exchange yesterday greenlit SMIC's private placement to finance the acquisition of the remaining shares it does not yet own in SMIC North. The deal has now entered the review phase of the China Securities and Regulatory Commission.
SMIC will issue new shares to five shareholders, including the China Integrated Circuit Industry Investment Fund, to acquire their combined 49 percent stake in SMIC North for about CNY40.6 billion (USD6 billion), according to the plan previously released by the Shanghai-based company.
This deal will help SMIC further improve its asset quality, enhance its business synergy, and promote its long-term development, the firm noted.
SMIC's shares [SHA: 688981] were trading up 0.3 percent at CNY122.78 (USD18.07) as of 10.55 a.m. in Shanghai today.
SMIC North was established in 2013 by SMIC Beijing, Zhongguancun Development Group, and Beijing Industrial Developing Investment Management. It is one of China's major wafer foundry enterprises.
In the first eight months of last year, SMIC North reported an operating revenue of CNY9 billion (USD1.3 billion) and a net profit of CNY1.5 billion. Its operating revenue and net profit were CNY11.6 billion and CNY585 million (USD86.1 million) in 2023 and CNY13 billion and CNY1.7 billion in 2024.
SMIC is China's largest wafer foundry by scale. Last year, its revenue climbed over 16 percent to CNY67 billion from a year earlier, while its net profit widened 36 percent to CNY5 billion. According to TrendForce, its global revenue from the wafer foundry business was about USD9.3 billion in 2025, ranking third globally after Taiwan Semiconductor Manufacturing and Samsung.