Tech war: SMIC names new chairman as mainland China’s top contract chip manufacturer faces further US semiconductor tech curbs

Shanghai-based SMIC said 58-year-old Liu Xunfeng, who had served as its vice-chairman, was named the chip maker’s new chairman effective on Monday
He replaced Gao Yonggang, who resigned from all his corporate roles at SMIC on the same day

Semiconductors

Che Panin Beijing

Published: 9:09pm, 17 Jul 2023

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Semiconductor Manufacturing International Corp (SMIC), mainland China’s top contract chip maker, on Monday announced the appointment of a new chairman to replace Gao Yonggang, who resigned from all his corporate roles effective on Monday “due to job adjustment”, which the company did not elaborate on.

Shanghai-based SMIC said 58-year-old Liu Xunfeng – who was “recommended” in May by the China Integrated Circuit Industry Investment Fund, also known as the Big Fund, to serve as the chip maker’s vice-chairman – on Monday officially took over as the company’s new chairman and head of its board’s nomination committee.

In the SMIC announcement, Gao confirmed that “he has no disagreement with the board and that there is no information in relation to his cessation to serve as an executive director that needs to be brought to the attention” of the company’s shareholders.

The latest executive reshuffle at the top of SMIC’s senior management reflects how Beijing is exerting greater control over the Shanghai- and Hong Kong-listed company, as China deals with increased pressure from Washington in terms of new curbs on semiconductor equipment exports and a possible US ban on mainland investments.

The new chairman of Semiconductor Manufacturing International Corp, Liu Xunfeng. Photo: Handout

Liu has had more than 30 years of experience in corporate management, according to the SMIC announcement.

He concurrently serves as vice-chairman of the Shanghai Chemical Industry Park Development Co, a member of the 14th National Committee of the Chinese People’s Political Consultative Conference, vice-president of China Petroleum and Chemical Industry Federation, and president of the Shanghai Society for Advanced Materials.

In addition, Liu holds a doctorate in management science and engineering from Xian Jiaotong University, a master’s degree in business administration from China Europe International Business School, and a master’s degree in chemical engineering from the Chemical Engineering Department of East China Institute of Chemical Technology, which is now known as East China University of Science and Technology.

China’s top foundry SMIC says profits halved in first quarter

Gao, who had served as SMIC’s chief financial officer since 2014, was named company chairman in March last year, months after Zhou Zixue – who had served as chairman since 2015 – resigned owing to “health reasons”.

SMIC, which was started in a Shanghai rice field by a group of Taiwan executives and engineers led by Richard Chang Rugin in the early 2000s, has witnessed several rounds of boardroom changes in its brief history.

With US sanctions hindering its development of advanced semiconductor nodes below 10 nanometres, SMIC has sharpened its focus on capacity expansion of mature nodes. It is currently building three 28-nm foundries.

Despite being on a US trade blacklist for more than two years and being restricted from importing advanced chip-making equipment, SMIC last year recorded 33.6 per cent year on year revenue growth to US$7.2 billion and achieved a net profit of US$1.8 billion, both record amounts, according to its annual report.