Core Viewpoint - SMIC is planning to acquire a minority stake in its subsidiary, SMIC North, through the issuance of A-shares, involving the purchase of 49% equity held by other shareholders [1][3]. Group 1: Transaction Details - The transaction is expected not to constitute a major asset restructuring but will be classified as a related party transaction [1]. - SMIC has signed a Letter of Intent for Asset Purchase with the main shareholders of SMIC North, with specific terms such as transaction method, pricing, and valuation still to be negotiated [3]. - The stock of SMIC will be suspended from trading starting September 1, 2025, for a period not exceeding 10 trading days to ensure fair information disclosure [1]. Group 2: Company Background - SMIC North was established in July 2013 as a joint investment between SMIC and the Beijing government, focusing on advanced 12-inch integrated circuit manufacturing [1]. - SMIC North currently operates a 12-inch semiconductor wafer production line, which began production in 2016, with technology nodes ranging from 65nm to 24nm [1]. Group 3: Industry Context - Several domestic wafer manufacturers, including SMIC, are actively pursuing acquisitions to consolidate remaining stakes in subsidiaries or related companies [4]. - The trend of acquiring remaining equity or related assets is seen as a common strategy for technology companies to enhance operational efficiency and asset quality [5]. - SMIC is currently in the process of expanding its production capacity, with a monthly capacity reaching approximately 990,000 8-inch equivalent wafers [6][7].