SMIC raises $1.09B in first-round sales of shares

Nov. 16, 2001 – Shanghai, China – Semiconductor Manufacturing International Corp. (SMIC) has successfully secured more than $1 billion of capital through the sale of Series A Preferred Shares earlier this fall.

The investor group includes Shanghai Industrial Holdings Ltd., Goldman Sachs, H&Q Asia Pacific Limited, Walden International, and a Singapore consortium led by Vertex Management. With this global network of strategic and financial investors, this first round brings SMIC a total commitment of more than $1 billion. No one shareholder currently has a controlling stake in the company.

“There is no dominant shareholder in this company,” said SMIC spokesperson Sarina Huang. “Only those investors who have put in more than US$50 million will be on the board of directors.”

Each of the nine major investors owns stakes ranging from 10 to 17%, according to the Financial Times.

In addition, the company is currently securing a $480 million loan from domestic banks. The total capital financing raised will be used by SMIC to fund its construction of three advanced wafer fabs in the Zhang Jiang Hi-Tech Park, located in the Pudong New Area of Shanghai, China.

Pilot production has already begun in Fab 1 and volume output is expected by the beginning of 2002. Fab 2 is expected to begin equipment installation by August 2002 and to commence pilot production by the end of 2002.

SMIC is operating at 0.25-micron and below processing technology in the production of various ICs to be used in commercial products ranging from mobile phones to laptop computers, the company said.


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