Electronics

The business scope of the Lingang joint venture includes the production of 12-inch integrated circuit wafers and integrated circuit packaging series.

On November 12, SMIC announced that SMIC, the second phase of the National Integrated Circuit Fund (hereinafter referred to as "the second phase of the National Fund") and Hailinwei entered into a Lingang joint venture agreement to jointly establish a Lingang joint venture company. The investment is 8.866 billion U.S. dollars.

The registered capital of the Lingang joint venture is US$5.5 billion. SMIC, the second phase of the National Fund and Hailinwei have agreed to invest US$3.655 billion, US$922 million and US$923 million respectively, accounting for 66.45% of the registered capital of the Lingang joint venture. , 16.77% and 16.78%.

u3000u3000 According to the announcement, the business scope of the Lingang joint venture includes the production of 12-inch integrated circuit wafers and integrated circuit packaging series; technical testing; integrated circuit-related technology development, technical services and design services; sales of self-produced products.

SMIC believes that by grasping the strategic opportunity period for the development of the integrated circuit industry in the Lingang Free Trade Zone, the establishment of the Lingang joint venture will meet the growing market and customer needs, and will help the company expand its production scale, reduce production costs, Improve foundry services to promote the company's sustainable development.

u3000u3000 SMIC currently has a 200mm wafer fab in Shanghai and a 300mm advanced process joint venture wafer fab with actual control rights.

Hailinwei was established in October 2021 and is mainly engaged in investment holding. Shanghai Integrated Circuit Fund Phase II, Shanghai Xinxin Industry Private Equity Investment Fund Partnership (Limited Partnership) and Shanghai Integrated Circuit Fund hold 36.67%, 33.33% and respectively. 30.00% equity.