SMIC has announced that its application to acquire the remaining 49% stake in SMIC North has been accepted for review by the Shanghai Stock Exchange. The RMB 40.6 billion ($5.6 billion) transaction represents a decisive step toward consolidating the company's leadership in China's wafer foundry sector.

The acquisition will be executed through share issuance to five existing shareholders: National IC Fund, IC Investment Center, Yizhuang State Investment, Zhongguancun Development, and Beijing Industrial Investment—all major state-backed semiconductor investors. Upon completion, SMIC will achieve full ownership of SMIC North.

Established in 2013, SMIC North operates two 300mm production lines with total capacity of 70,000 wafers per month, spanning 65nm to 28nm process nodes. The facility supports logic, low-power, and mixed-signal chips for mobile, consumer, and automotive applications, with 2024 net profit growing nearly 3x year-over-year.

Full control will enable SMIC to optimize resource allocation, reduce related-party transactions, and leverage SMIC North's strong profitability to fund advanced R&D and new capacity expansion.

ICgoodFind : This acquisition consolidates SMIC's most profitable mature-node asset. By fully owning SMIC North's 70K WPM 28-65nm capacity, SMIC secures stable cash flow to fund its advanced technology roadmap while streamlining operations—a strategic move strengthening both current profitability and future capability.