SMIC Ningbo is a joint venture between SMIC and Ningbo Shengxin, Beijing IC Sub-Fund and SMIC Wafer in November 2016.
On March 23, SMIC Ningbo, SMIC, National IC Fund, Ningbo Shengxin, Beijing IC Design Sub-fund, Ningbo IC Fund, and Infinity Tek Fund entered into a capital increase agreement and agreed to pass the second The revised joint-venture contract was revised to revise the first revised joint-venture contract. Responsibility for capital injection by all parties will result in an increase in registered capital from RMB 355 million to RMB 1.82 billion. The specific share capital is as follows:
(i) SMIC has agreed to further fund the registered capital of the JV with a cash of RMB 565 million and its equity in the JV will be reduced from approximately 38.59% to approximately 38.57%; (ii) the National IC Fund has agreed to further Cash of RMB 500 million will be injected into the registered capital of the joint venture company, and its equity in the joint venture company will increase from approximately 28.17% to approximately 32.97%; (iii) Ningbo Shengxin has agreed to further inject cash capital of RMB 200 million into the registered capital of the joint venture company And its equity in the joint venture company will be reduced from approximately 24.79% to approximately 15.82%; (iv) The Beijing IC Design Sub-Fund will not make further cash injection, and its equity in the joint venture will be reduced from approximately 8.45% to approximately 1.65. (v) Ningbo IC Fund has agreed to inject RMB 100 million in cash in the registered capital of the joint venture company, which represents approximately 5.50% of the enlarged registered capital of the joint venture company; and (vi) the Infinital Tektronix Fund has agreed to cash in RMB 1 The registered capital of the joint venture company invested by one hundred million yuan, accounting for approximately 5.50% of the enlarged registered capital of the joint venture company.
SMIC Ningbo specializes in high-voltage simulation, RF front-end, and new silicon semiconductor process integration technologies for optoelectronics and magnetic materials. Its products, together with the company's advanced logic technology products, can realize the overall solution of related systems, and effectively support the current rapid development. 4G/5G mobile communications and handheld devices, smart appliances, industrial intelligent control and robotics, new energy vehicles and other markets, complete the integration of upstream and downstream resources of the relevant semiconductor industry chain.
As a strong expansion of the original product areas, SMIC Ningbo is an important strategic layout for SMIC to achieve its grand strategic goals, which has an important influence on its future development.