Semiconductor Manufacturing International Corporation ("SMIC", NYSE: SMI; SEHK: 981) China's largest and most advanced semiconductor foundry today announced an investment agreement from China Integrated Circuit Industry Investment Fund Co., Ltd., (CICIIF), the national fund established to promote the IC industry in China. Under the agreement, CICIIF will acquire 4.7 billion new shares at a subscription price of 0.6593 HKD per share.
The gross proceeds will be used for SMIC's capital expenditure, debt repayment and general corporate purposes. Under the agreement CICIIF is entitled to nominate one member to SMIC's board of directors.
CICIIF was established in September 2014 to support the growth of the IC industry and enable the integration of the IC supply chain's ecosystem in China.
"We are happy to receive CICIIF's recognition and investment. This shows SMIC's important role in the China semiconductor ecosystem," said Dr. Tzu-Yin Chiu, Chief Executive Officer and Executive Director of SMIC. "Partnering with CICIIF further supports SMIC's long term goals of gaining a stronger foothold in China and playing a more important role in the global IC market."
The agreement between SMIC and CICIIF is subject to customary conditions and regulatory approvals.
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