Sou Hu Cai Jing·2025-09-09 21:44Core Viewpoint - Semiconductor manufacturing giant SMIC (中芯国际) is making significant progress in acquiring a 49% minority stake in its subsidiary, SMIC North (中芯北方), which will result in SMIC North becoming a wholly-owned subsidiary [1][2]. Group 1: Acquisition Details - SMIC plans to acquire the 49% stake from five institutions through a directed share issuance at a price of 74.20 yuan per share, which is at least 80% of the average trading price over the previous 120 trading days [2]. - The final valuation and transaction price for the assets are yet to be determined, but they are not expected to meet the criteria for a major asset restructuring [2]. - Following the acquisition, SMIC will control 100% of SMIC North, enhancing its profit margins significantly [4]. Group 2: Financial Performance - In the first half of 2025, SMIC reported revenues of 32.35 billion yuan, a year-on-year increase of 23.1%, and a net profit of 2.3 billion yuan, up 39.8% [2]. - SMIC North's projected revenues for 2023 and 2024 are 11.58 billion yuan and 12.98 billion yuan, respectively, with net profits of 585 million yuan and 1.68 billion yuan [4]. - The financial data indicates that SMIC North's profit margins are expected to improve as its production lines approach the end of their depreciation period [4]. Group 3: Industry Context - The semiconductor industry in China has seen a surge in mergers and acquisitions, with five out of seven major asset restructuring cases in August occurring in this sector [6]. - The trend of consolidation in the semiconductor industry aligns with global patterns and is driven by domestic development needs, as major companies seek to acquire mature technologies to enter new markets [6]. - The acquisition by SMIC also addresses the exit needs of shareholders, particularly the National Integrated Circuit Industry Investment Fund, which is in an optimization phase [5].