Core Viewpoint - SMIC International announced a suspension of trading on August 29, 2023, as it plans to acquire a 49% minority stake in its subsidiary, SMIC North Integrated Circuit Manufacturing, through the issuance of A-shares [1] Group 1: Acquisition Details - The acquisition involves issuing A-shares to purchase the minority stake in SMIC North, with specific terms still under discussion [1] - Initial identified transaction partners include major investment entities such as the National Integrated Circuit Industry Investment Fund, Beijing Integrated Circuit Manufacturing and Equipment Investment Center, and others [1] - Trading of the company's stock will be suspended starting September 1, 2025, for a period not exceeding 10 trading days [1] Group 2: SMIC North's Background - SMIC North was established in July 2013 as a joint investment between SMIC International and the Beijing municipal government, focusing on 12-inch integrated circuit manufacturing [2] - The facility has two production lines with a combined monthly capacity of 70,000 wafers, producing advanced technology products [2] Group 3: Strategic Considerations - The acquisition aims to recover profitable assets, enhancing the overall profit of the listed company, as SMIC North has been operational for over 10 years and is nearing the end of its depreciation period [2] - By acquiring the 49% stake, SMIC International will increase its ownership in SMIC North to 100%, significantly boosting its net profit attributable to shareholders [3] - The acquisition also addresses the exit needs of major shareholders, particularly the National Integrated Circuit Industry Investment Fund, which has been in its investment phase for nearly 11 years [3] Group 4: Financial Projections - Revenue projections for SMIC International are estimated at 69.93 billion, 82.52 billion, and 96.38 billion yuan for 2025, 2026, and 2027, respectively, with net profits of 5.33 billion, 6.71 billion, and 8.39 billion yuan [3] - The corresponding price-to-earnings ratios are projected to be 172, 137, and 109 times for the respective years, indicating strong competitive positioning in the wafer foundry sector [3]

Core Viewpoint - The article discusses the strategic move by SMIC (Semiconductor Manufacturing International Corporation) to acquire minority stakes in its subsidiary, SMIC North, through an A-share issuance, aiming to strengthen its position in the semiconductor industry [1]. Group 1: Company Overview - SMIC North was established in 2013, focusing on the mass production of integrated circuits at 45nm and finer technology nodes, primarily for consumer electronics [3]. - Initially, SMIC and its subsidiaries, along with Beijing Industrial Development Investment Management Co., held stakes in SMIC North, with the National Integrated Circuit Industry Investment Fund becoming a significant shareholder in 2016 [3]. - The registered capital of SMIC North increased from $2.4 billion to $4.8 billion after multiple rounds of funding, with a total planned investment of $7.2 billion to enhance production capacity [3]. Group 2: Production Capacity and Technology - SMIC North currently operates two production lines with a monthly capacity of 35,000 wafers each, focusing on 40nm and 28nm technology nodes [4]. - The product range includes general logic circuits, low-power logic circuits, mixed-signal circuits, and RF products, which are utilized in mobile phones, wireless connectivity, digital home devices, automotive electronics, microprocessors, smart cards, and flash memory [4].