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Core Viewpoint - Semiconductor Manufacturing International Corporation (SMIC) is planning to acquire minority stakes in its subsidiary, SMIC North Integrated Circuit Manufacturing (Beijing) Co., Ltd. (SMIC North), through the issuance of A-shares [1][4]. Group 1: Transaction Details - The company has signed a Letter of Intent for Asset Purchase with the main shareholders of SMIC North [4]. - The specific transaction method, pricing, and valuation will be determined through further negotiations among the parties involved [4]. - This transaction is not expected to constitute a major asset restructuring or a reverse listing but will be classified as a related party transaction [4]. Group 2: Company Background - SMIC North was established on July 12, 2013, with a registered capital of 4.8 billion yuan [4]. - The company specializes in semiconductor manufacturing, including integrated circuit chip production with a line width of 28 nanometers and below [4]. - SMIC holds a 51% stake in SMIC North, with the largest shareholders being the National Integrated Circuit Industry Investment Fund (32%) and SMIC Holdings (25.5%) [5][6]. Group 3: Production Capacity - Both SMIC North and SMIC Beijing currently have a monthly production capacity of 70,000 12-inch wafers [8]. - An expansion project approved in August 2019 aims to establish a high-end integrated circuit chip production line with a capacity of 35,000 wafers per month after a ramp-up period of three years [6].