- Semiconductor Manufacturing International Corporation is looking to raise $2.8 billion in capital.
- The firm plans to use the capital to start a production line offering 14nm chips used in crypto miners.
Semiconductor Manufacturing International Corporation (SMIC) is planning to raise $2.8 billion in capital through a listing on Shanghai’s tech-focused STAR Market. SMIC is China’s largest semiconductor fabrication firm.
The company plans to use the capital to start a production line offering 14nm chips - the standard for processors used in smartphones and crypto miners. SMIC is also joining forces with Canaan to manufacture a crypto miner, details of which remain undisclosed.
In a bid to offer China’s electronics sector a viable alternative to Taiwan Semiconductor Manufacturing Company (TSMC), SMIC appears to be stepping up its production capabilities. TSMC has cut off Chinese tech multinational Huawei as a result of US sanctions. Although TSMC is a Taiwanese firm, most of its manufacturing equipment is made in the US, meaning that it needs to comply with US sanctions and export controls. Guangzhou-based GF Securities has published research showing that US firms control 50% of the core process equipment market for Chinese fabs.
Unlike Huawei, the crypto mining sector is not a target for US tech sanctions. However, broad sanctions against Chinese companies could curb their ability to get critical Application Specific Integrated Circuit (ASICs) required for miners.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.