Those big-ticket transactions – 8.27 billion yuan (US$1.2 billion) for Hua Hong and 40.6 billion yuan for SMIC – signalled a fresh round of consolidation in the country’s semiconductor industry, as Beijing’s tech self-sufficiency drive gathered pace amid heightened rivalry between China and the US.
The acquisition would help Hua Hong add a monthly production capacity of 38,000 65-nanometre and 40-nm chips, boosting its asset base and profitability, according to a filing with the Hong Kong stock exchange.
Hua Hong shares gained 9.42 per cent to close at HK$81.30 on Friday. SMIC’s stock in Hong Kong was up 5.11 per cent to close at HK$75.10.
SMIC had earlier announced that it would acquire the remaining 49 per cent stake it does not own in subsidiary Semiconductor Manufacturing North China (Beijing) Corp. (SMNC). The deal was first proposed in September.
