Design & Reuse

China’s SMIC moves to consolidate domestic chipmaking as it buys out SMNC minority stake.

Jan. 05, 2026 – 

By Samuel Nwite, Tekedia

China’s largest contract chipmaker, Semiconductor Manufacturing International Corp (SMIC), is taking a decisive step to tighten its grip on a key manufacturing arm as Beijing pushes for deeper self-reliance in semiconductors amid sustained U.S. technology curbs.

SMIC said on Monday it plans to acquire the remaining 49% stake in its subsidiary SMIC Ningbo (SMNC) for 40.6 billion yuan ($5.79 billion), a move that will give the Hong Kong- and Shanghai-listed foundry full ownership of the unit. The transaction will be settled through the issuance of about 547.2 million A-shares to five existing SMNC shareholders, including the powerful China National Integrated Circuit Industry Investment Fund, widely known as the “Big Fund.”

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