SMIC-backed Chinese contract chip maker seeks to raise US$1.4 billion on Shanghai’s Star Market
- Semiconductor Manufacturing Electronics Shaoxing (SMES) is offering 1.69 billion shares at 5.69 yuan apiece to raise 9.6 billion yuan (US$1.4 billion)
- SMES, a joint venture between SMIC and the Shaoxing government, makes power semiconductors and sensors, as well as packaging of analogue chips
A contract chip maker backed by China’s top foundry is seeking to raise US$1.4 billion in one of the world’s biggest initial public offerings so far this year, as Beijing doubles down on efforts to develop its semiconductor industry amid heightened tech rivalry with the US.
If the company successfully raises 9.6 billion yuan (US$1.4 billion), it will be the year’s second-biggest IPO in Asia-Pacific after Nexchip Semiconductor’s US$1.67 billion fundraising on the Star Market on April 18, according to Refinitiv data.
Both IPOs, however, still fall short of ADNOC Gas’ US$2.48 billion IPO in Abu Dhabi in March, the world’s largest this year.
The IPO comes at a time when the Chinese government has been ramping up support for the semiconductor sector amid an intensifying tech war with the US, including easier access to the domestic capital market. Chips have emerged as a key battleground in the tech war, with the US choking China’s access to both semiconductor chips and the equipment to manufacture them.