SMIC North acquisition is now official in SMIC’s announcement on the evening of September 8, 2025.
Semiconductor Manufacturing International Corporation (SMIC, Zhōngxīn Guójì 中芯国际) proposed issuing A‑shares to buy the remaining 49% equity stake in SMIC North Integrated Circuit Manufacturing (Beijing) Co., Ltd. (SMIC North, Zhōngxīn Běifāng 中芯北方).
SMIC’s A‑shares were scheduled to resume trading at market open on Tuesday, September 9, 2025.
Key Points
- Deal: 中芯国际 will issue A‑shares to acquire the remaining 49% equity stake in 中芯北方, converting it into a wholly owned subsidiary.
- Consideration & pricing: proposed price is ¥74.20 RMB per A‑share, equal to no less than 80% of the 120‑trading‑day average (¥92.75 RMB), representing a material discount investors will scrutinize.
- SMIC North performance: reported operating revenue rose from ¥11.576 billion RMB (2023) to ¥12.979 billion RMB (2024), and net profit grew from ¥585 million RMB (2023) to ¥1.682 billion RMB (2024).
- Status & impact: audit and independent valuation pending; SMIC expects no single controlling shareholder after closing and highlights operational synergies (including 12‑inch capacity and 28 nm and below process capabilities) as strategic benefits.
- Operating Revenue (2023): ¥11.576 billion RMB ($1.61 billion USD)
- Operating Revenue (2024): ¥12.979 billion RMB ($1.80 billion USD)
- Net Profit (2023): ¥585 million RMB ($81.25 million USD)
- Net Profit (2024): ¥1.682 billion RMB ($233.61 million USD)
Transaction overview — what happened
The board approved a proposal to issue A‑shares as consideration for acquiring the 49% stake in SMIC North.
The move would convert SMIC North from a partly‑held affiliate into a wholly owned subsidiary once the deal completes.
SMIC emphasized that the company’s primary business scope will not change, and that there will still be no single controlling shareholder after closing.
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Consideration and pricing — the numbers
The proposed share‑issuance price is ¥74.20 RMB ($10.31 USD) per A‑share.
That price equals no less than 80% of the 120‑trading‑day average A‑share price used as the benchmark, which was ¥92.75 RMB ($12.88 USD).
Why this matters:
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Discounted pricing to the 120‑day average is a common mechanism for share‑issuance deals to balance seller and buyer interests.
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The gap between ¥74.20 RMB and ¥92.75 RMB signals a material discount that investors will scrutinize when final valuation and audit results are released.
Timing, approvals and current status
As of the proposal signing date, audit and valuation work for the transaction had not been completed.
The final assessed value of the target assets and the definitive transaction price remain to be determined.
Based on current estimates, the deal is not expected to meet the “major asset restructuring” threshold under the applicable Restructuring Management Measures.
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Rationale and expected impact
SMIC outlined three primary benefits it expects from the acquisition.
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Improve asset quality of the listed company.
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Enhance operational synergies between SMIC and SMIC North to better coordinate capacity, technology and services.
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Support long‑term strategic development of the listed group and strengthen its platform‑style ecosystem.
SMIC also said management expects the company to remain without a single controlling shareholder after closing, so the deal should not change ultimate control.
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About SMIC North (Zhōngxīn Běifāng 中芯北方)
SMIC North was established on July 12, 2013, with registered capital of ¥4.80 billion RMB ($666.67 million USD).
The legal representative is Liu Xunfeng (Liú Xùnfēng 刘训峰).
The company’s business scope includes:
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12‑inch wafer foundry services across multiple process platforms, including large‑scale digital IC manufacturing at 28 nm and below.
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Probe testing and final test.
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Photomask manufacturing, packaging and testing, IC design and technical services, and sales of self‑produced products.
SMIC North historical performance — revenue and profit
Reported operating revenue was ¥11.576 billion RMB ($1.61 billion USD) in 2023.
Reported operating revenue was ¥12.979 billion RMB ($1.80 billion USD) in 2024.
Net profit attributable to owners of the parent was ¥585 million RMB ($81.25 million USD) in 2023.
Net profit attributable to owners of the parent was ¥1.682 billion RMB ($233.61 million USD) in 2024.
About SMIC (Zhōngxīn Guójì 中芯国际)
SMIC is one of the world’s leading wafer foundry companies and a leading IC manufacturer in mainland China.
The company provides 8‑inch and 12‑inch wafer foundry and technology services to customers globally.
SMIC also develops a platform‑style ecosystem to offer one‑stop supporting services such as design support, IP, and photomask manufacturing to improve integration across the IC value chain.
What to watch next — investor checklist
Key items market participants should monitor are:
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Completion of the audit and independent valuation and publication of the definitive consideration amount.
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Formal shareholder approvals and any regulatory filings that could affect timing.
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Announcements clarifying whether state investors, the China Integrated Circuit Industry Investment Fund (the “Big Fund”), or other parties are among equity holders selling stakes in SMIC North.
Strategic takeaways for investors, founders and tech leaders
This transaction is more than a balance‑sheet move.
Converting SMIC North to a wholly owned unit can help SMIC:
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Streamline operational decision‑making across wafer fabs and testing capacities.
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Improve integration between process development and capacity planning for 12‑inch and 8‑inch platforms.
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Potentially accelerate product‑level synergies in the 28 nm and below nodes where SMIC North is positioned.
For investors, the immediate focus will be on the valuation process and whether the discount to the 120‑day average fairly reflects SMIC North’s recent profit growth and strategic value to the group.
For founders and partners in the semiconductor ecosystem, consolidation like this often signals a push toward tighter vertical integration and a desire to capture more of the IC value chain internally.
How this fits into China’s broader chip landscape
SMIC’s move mirrors a wider trend of domestic foundries consolidating assets to secure capacity and streamline R&D investment.
Market watchers will also parse any signals about state participation, private capital exits or the role of national industry funds like the “Big Fund.”
Conclusion
The SMIC North acquisition proposal is a strategic consolidation step designed to improve operational synergies and asset quality while keeping SMIC’s control structure unchanged.
Investors should track final audit, valuation details, and shareholder approvals to fully assess the deal’s value.
SMIC North acquisition remains the headline to follow as this story develops.
