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SMIC secured Shanghai Stock Exchange approval to acquire the remaining 49% of SMIC North in a RMB 40.601 billion share-based deal, marking China’s largest domestic wafer foundry M&A. The move would bring 12-inch mature-process capacity and related services under full SMIC control, aiming to improve asset quality, operational synergies and scale amid tight global foundry supply. Regulators found the transaction compliant with restructuring rules. Founder Zhang Rujing emphasized pivoting from chasing bleeding-edge nodes toward mature, specialty processes—which make up most market demand—advocating niche, high-value fabs and localized supply chains to strengthen China’s semiconductor resilience.
SMIC's proposed acquisition of the remaining stake in SMIC North reshapes China's domestic wafer foundry consolidation and could affect capacity, supply chains, and competitive dynamics for tech firms. Leadership comments on process-node priorities signal strategic focus that may influence investment and partner decisions across the semiconductor ecosystem.
Dossier last updated: 2026-05-22 10:08:24
China Semiconductor Manufacturing International Corporation (SMIC) won Shanghai Stock Exchange approval for a 40.601 billion RMB share-based acquisition that will buy the remaining 49% stake in its controlled subsidiary, SMIC North. If completed, SMIC will own 100% of SMIC North, which operates 12-inch wafer foundry services across multiple process platforms. The deal, the largest M&A in China's domestic wafer foundry sector, aims to improve SMIC’s asset quality and operational synergies while keeping its core business scope unchanged. Regulators determined the transaction meets restructuring and disclosure requirements; SMIC frames the buyout as strengthening long-term development amid tight global foundry capacity and industry growth.
中芯国际发行股份购买资产获上交所重组委会议通过
China’s largest domestic wafer foundry deal is up for review: SMIC (中芯国际) is seeking approval to buy the remaining 49% of SMIC North (中芯北方) for RMB 40.601 billion via a share issuance to five sellers including the state-backed IC fund. If approved, SMIC will own 100% of SMIC North, consolidating 12-inch mature-process wafer capacity and related services under a wholly owned unit. Regulators on the Shanghai Stock Exchange’s M&A committee reviewed the transaction on May 11, 2026. Analysts say the acquisition strengthens SMIC’s leading foundry position in China, boosts scale and process coordination, and helps it compete internationally in a tense semiconductor landscape.
78-year-old SMIC founder Zhang Rujing warned that chasing 2nm/3nm leading-edge nodes is a misconception, saying advanced process chips account for less than 20% of market demand while over 80% comes from mature and specialty processes. During a field visit to Yangzhou, he inspected a silicon-based 3D capacitor project and urged China’s semiconductor strategy to focus on niche, high-value segments—medical ultrasound, radiation-hardened aerospace chips, servo drives—rather than blindly replicating large, capital-intensive wafer fabs. Zhang advocated building “small giant” specialists, localizing materials and equipment, and aligning efforts with edge/distributed AI and wearable applications where such niche components can compete globally and reduce supply-chain dependence.