Semiconductor Manufacturing International Corporation (SMIC), the largest semiconductor foundry in China, said in an announcement on Tuesday that it intends to issue no more than 1.686 billion shares in China’s Sci-Tech innovation board (SSE Star Market).
About 40% of the proceeds will be used to invest in the 12-inch chip SN1 project, about 20% will be used as reserve funds for the company's advanced and mature process research and development projects, and about 40% will be used as supplementary working capital.
SMIC's 12-inch chip SN1 and SN2 plant construction project is located in Zhangjiang Hi-Tech Park, Pudong New District, Shanghai.
The SN1 project consists of a production plant, a CUB powerhouse, a production scheduling and R&D building, and aims to produce 14nm and more advanced process chips.
At the end of March this year, SMIC released its 2019 annual results, which together recorded revenue of approximately $3.116 billion and net profit attributable to SMIC of $235 million; profit before tax, depreciation and amortization of $1.37 billion, a record high.
Revenue from Mainland China and Hong Kong, the United States, and Eurasia accounted for 59.5%, 26.4%, and 14.1%, respectively.
SMIC said in a letter to shareholders that its first-generation 14nm FinFET technology has entered volume production, contributing approximately 1% of wafer revenue in the fourth quarter of 2019 and is expected to grow steadily in volume in 2020. The second generation FinFET technology platform is continuously being introduced to customers.
