SHANGHAI, Feb. 12, 2015 -- Semiconductor Manufacturing International Corporation ("SMIC", NYSE: SMI; SEHK: 981) China's largest and most advanced semiconductor foundry today announced an investment agreement from China Integrated Circuit Industry Investment Fund Co., Ltd., (CICIIF), the national fund established to promote the IC industry in China. Under the agreement, CICIIF will acquire 4.7 billion new shares at a subscription price of 0.6593 HKD per share.
The gross proceeds will be used for SMIC's capital expenditure, debt repayment and general corporate purposes. Under the agreement CICIIF is entitled to nominate one member to SMIC's board of directors.
CICIIF was established in September 2014 to support the growth of the IC industry and enable the integration of the IC supply chain's ecosystem in China.
"We are happy to receive CICIIF's recognition and investment. This shows SMIC's important role in the China semiconductor ecosystem," said Dr. Tzu-Yin Chiu, Chief Executive Officer and Executive Director of SMIC. "Partnering with CICIIF further supports SMIC's long term goals of gaining a stronger foothold in China and playing a more important role in the global IC market."
The agreement between SMIC and CICIIF is subject to customary conditions and regulatory approvals.
Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in mainland China. SMIC provides integrated circuit (IC) foundry and technology services at 0.35-micron to 28-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm mega-fab in Shanghai; a 300mm mega-fab in Beijing and a majority owned 300mm fab for advance nodes under development; and a 200mm fab in Tianjin and Shenzhen. SMIC also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan, and a representative office in Hong Kong. For more information, please visit www.smics.com.