Rumor: SMIC Raises Funds to Expand Beijing Factory
China Business News, 7/09/10
Chinese semiconductor foundry Semiconductor Manufacturing International Corporation (SMIC) (NYSE: SMI, 0981.HK) said in a filing yesterday that the company agreed to place up to 1.5 bln shares to no less than six subscribers at a price of HKD 0.52 per share. If the shares are successfully placed, SMIC will earn net proceeds of HKD 755 mln after deduction of relevant expenses.
SMIC investor relations manager Feng Enling said that the funds will be used chiefly to expand the company's production capacity. Feng did not deny that that the funds would be invested mainly in SMIC's Beijing facility.
Another SMIC executive said that the company's Beijing 12-inch facility had long ago reached maximum capacity, and that customer relations would be affected if the company fails to expand capacity. The executive said that SMIC plans to more than double production capacity at the Beijing plant to 45,000 sheets per month, up from 20,000.
Keywords: financing Feng Enling hardware semiconductor production capacity 12-inch SMI 0981.HK production facility
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