SMIC recently said in the prospectus for its listing in China that due to the latest changes to U.S. export rules in May, a number of semiconductor equipment and technology imported from the U.S. may not be available to put into operation for a number of customers' products until getting approval from the U.S. Department of Commerce
SMIC needs to face the adjustment of U.S. export control policy and the uncertainty of U.S.-China trade friction. According to the company, there are still many uncertain legal concepts in the aforementioned revised rules and the extent of their specific impact cannot yet be accurately assessed.
In the evening of June 1, SMIC's IPO prospectus, the SSE has accepted applications for listing.
According to the prospectus, SMIC plans to raise 20 billion yuan this time and the funds raised are planned to be used in three areas.
The 8 billion yuan is for the SN1 12-inch chip project in Shanghai, which is SMIC's main bearer platform for the development and mass production of advanced processes up to 14nm, which is currently SMIC's most advanced process.
Another 8 billion yuan was used to supplement working capital, and another 4 billion yuan was used to reserve funds for advanced and mature process R&D projects.
According to the prospectus, after many years of accumulation, SMIC began a period of rapid development in 2015, when it became the first company in mainland China to achieve 28nm mass production, achieving a breakthrough in zero production of high-end chips in mainland China.
In 2019, SMIC again made significant progress to achieve 14nm FinFET mass production, and the second generation FinFET technology into the customer introduction stage.
IC Insights statistics show that the top ten pure foundries accounted for 97% of the global market share in 2018, and the top five were TSMC, Grofontein, UMC, SMIC, Powerchip Technology, accounting for 88% of the global market.
