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China’s top chip maker SMIC gets fast-track approval for US$2.82 billion fundraising plan to bolster capital in global tech war
- The biggest fundraising plan on Star Market gets approved by the Shanghai stock exchange within 18 days
- Company says US laws restricting its access chip suppliers could curb output and sales
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China has fast-tracked the fundraising process for the nation’s largest chip maker on its domestic Nasdaq-style board, underpinning the state support for home-grown champions in the technology war with the US.
The Shanghai Stock Exchange on Friday approved a plan by Semiconductor Manufacturing International Corporation (SMIC) to raise 20 billion yuan (US$2.82 billion) on its fledgling Star Market to help develop a new chip and replenish capital.
The greenlight came 18 days after the company submitted its plan, making it the fastest approval process since the Shanghai exchange was established in 1990.
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“It is of great significance to the Star Market because another domestic technology giant will get listed here,” said Yin Zhiyao, founder and chief executive of chip maker Amec. “As a fundraising platform for technology companies, it will play a bigger role in supporting China’s technological development.”
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Amec was among the first batch of debutants when the Star Market for technology companies was launched on July 22 last year. The board itself came to being at a record speed of about eight months at the behest of President Xi Jinping.
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