Wednesday, Aug 05, 2020 | Last Update : 11:06 AM IST

133rd Day Of Lockdown

Maharashtra45795629935616142 Tamil Nadu2682852087844349 Andhra Pradesh176333956251604 Karnataka145830692722704 Delhi1391561252264033 Uttar Pradesh100310572711817 West Bengal80984568841785 Telangana6894649675563 Gujarat65704485612529 Bihar6203140760349 Assam4816233429115 Rajasthan4667932832732 Haryana3779631226448 Odisha3768124483258 Madhya Pradesh3508225414912 Kerala279561629988 Jammu and Kashmir2239614856417 Punjab1901512491462 Jharkhand140705199129 Chhatisgarh10109761369 Uttarakhand8008484795 Goa7075511460 Tripura5520367528 Puducherry4147253758 Manipur301818147 Himachal Pradesh2879171013 Nagaland24056594 Arunachal Pradesh179011053 Chandigarh120671520 Meghalaya9173305 Sikkim7832971 Mizoram5022820
  Business   Companies  06 Jul 2020  Chipmaker SMIC set for a huge IPO as China looks to make semiconductor sector self-reliant

Chipmaker SMIC set for a huge IPO as China looks to make semiconductor sector self-reliant

AFP
Published : Jul 6, 2020, 9:07 pm IST
Updated : Jul 6, 2020, 9:07 pm IST

SMIC is China’s biggest contract manufacturer of chipsets, and the country's hope to make its tech firms non-dependent on US chipmakers.

The SMIC IPO push is part of the Communist Party’s strategy to develop global leaders in artificial intelligence, big data, and other advanced sectors.
 The SMIC IPO push is part of the Communist Party’s strategy to develop global leaders in artificial intelligence, big data, and other advanced sectors.

Shanghai: China’s largest chipmaker, Semiconductor Manufacturing International Corporation, is planning to raise as much as $7.5 billion in a Shanghai stock listing that would be the country’s biggest in a decade.

Details of the planned offers were released in a statement filed Monday on the website of the Shanghai exchange and sent the company’s Hong Kong-listed stock soaring more than 20 percent to a record high.

 

The company said it would raise at least 46.3 billion yuan, more than doubling an original target, after pricing its offer in the wake of a week-long jump in the value of the Hong Kong shares.

But SMIC said that if over-allotments are exercised, it could raise up to 53.2 billion yuan ($7.5 billion).

The offering would be the largest in mainland China since Agricultural Bank of China raised 68.5 billion yuan in an initial public offering in 2010.

China has eased listing rules over the past couple of years to encourage more domestic share issues by big Chinese tech firms as Beijing challenges the United States for global tech dominance.

 

The push is part of the Communist Party’s strategy to develop domestic champions into global leaders in artificial intelligence, big data, and other advanced sectors.

China previously lost the listings of internet giants such as Alibaba and Baidu to Wall Street, but is looking to change that, especially as tensions with the US rise across all fronts, and as China’s own capital markets mature.

SMIC is China’s biggest contract manufacturer of chipsets and a key component of Beijing’s plans to someday achieve semiconductor self-reliance.

Analysts say China’s dependence on foreign—including US-made—chips hinders that national goal.

 

The issue has been brought into stark relief by the US campaign to hobble Chinese telecom giant Huawei, which Washington fears could allow China’s security state to tap into global telecoms networks.

The US Commerce Department in May announced plans to cut off Huawei’s access to global semiconductor supplies, which the company said would threaten its “survival”.

Tags: semiconductor, chipset, ipo