Mei Ri Jing Ji Xin Wen·2025-08-29 16:56Core Viewpoint - Semiconductor foundry sector is witnessing significant acquisitions, with SMIC planning to acquire a minority stake in its subsidiary, SMIC North Integrated Circuit Manufacturing, which is crucial for its 12-inch wafer production [1][2]. Group 1: Acquisition Details - SMIC intends to issue shares to acquire 49% of SMIC North, which operates an important 12-inch wafer fab [1][2]. - SMIC North is a key profit contributor for SMIC, especially as newer fabs are still ramping up production and facing depreciation peaks [1][3]. Group 2: Financial Impact - In 2021, SMIC North reported a net profit of 2.02 billion yuan, with projected net profits of 2.31 billion yuan, 460 million yuan, and 526 million yuan for 2022, 2023, and 2024 respectively [3][5]. - The acquisition is expected to significantly enhance SMIC's net profit attributable to shareholders, as SMIC North's production lines are already depreciated, unlike the newer SMIC Beijing fab [4][5]. Group 3: Strategic Importance - SMIC North's 28nm and 45nm production lines are critical for SMIC's profitability, making the acquisition strategically important [3][5]. - The transaction is still in the planning stage, with potential partners including various investment funds and development companies [5].