Hua Hong NEC, Grace Semiconductor Complete Merger

Sina Tech, 12/30/11

Shanghai Hua Hong NEC Electronics and Grace Semiconductor have announced that the two companies have completed a merger. Under the agreement, Hua Hong NEC issued new shares to all of Grace Semiconductor's shareholders, in exchange for all of Grace Semiconductor's outstanding shares. With the merger, the new company becomes a major competitor to Chinese semiconductor foundry Semiconductor Manufacturing International Corporation (SMIC) (NYSE: SMI, 0981.HK).

Following the merger, the company's annual revenues are expected to reach USD 600 mln, with net profits expected to reach USD 100 mln. In comparison, SMIC's annual revenue for 2010 was USD 1.6 bln. For the quarter ending September 30, 2011, SMIC's net loss was USD 88.1 mln, while its revenue was USD 306.9 mln.

Editor's Note: For more information on this topic, please see "Huahong NEC, Grace Semiconductor to Merge" MD 12/01/08 issue.

Keywords: hardware loss revenue semiconductor Grace Semiconductor SMI SMIC 0981.HK profit Hua Hong NEC M&A

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