China's leading foundry, Semiconductor Manufacturing International Corporation (SMIC), has announced a landmark reorganization plan. The company will acquire the remaining 49% stake it does not already own in its subsidiary, SMIC North Integrated Circuit Manufacturing (Beijing) Co., Ltd., for a staggering 40.601 billion yuan (approximately $5.7 billion). Upon completion, SMIC North will become a wholly-owned subsidiary, strengthening SMIC's core competitiveness in the wafer foundry market.
The transaction values SMIC North at 82.859 billion yuan and will be settled through the issuance of approximately 5.471 billion new SMIC shares at a price of 74.20 yuan per share. The sellers are five institutional investors, including the National Integrated Circuit Industry Investment Fund (holding 32%).
Founded in 2013 with a registered capital of $4.8 billion, SMIC North focuses on 12-inch wafer manufacturing across process nodes from 65nm to 28nm, serving as a critical capacity base for SMIC in the mature-node segment. The company operates two production lines for nodes from 45/40nm to 32/28nm, with a combined monthly capacity of 70,000 wafers.
Financially, SMIC North has demonstrated solid performance. Its revenue for 2023, 2024, and the first eight months of 2025 reached 11.58 billion yuan, 12.98 billion yuan, and 9.01 billion yuan, respectively. Net profits for the same periods were 585 million yuan, 1.68 billion yuan, and 1.54 billion yuan, with its core foundry business accounting for over 99% of revenue.
SMIC stated that the full acquisition will enhance operational synergy in process technology, customer networks, and supply chains, improving overall asset quality and supporting long-term development.
ICgoodFind's Insight
SMIC's move to fully consolidate SMIC North represents a strategic investment to solidify its leadership and scale in the crucial mature-node foundry market. It underscores a focused commitment to building a resilient, integrated manufacturing foundation within China's semiconductor ecosystem.
