SMIC received over 53.2 billion yuan in funding! 14nm process is getting better

It has been a month since SMIC was listed on the domestic A-share market. The scale of this IPO fundraising is the largest in ten years, ranking fifth among more than 3,900 listed companies. It has just been officially confirmed that this fundraising was oversubscribed and raised 53.23 billion yuan.

SMIC was listed on the A-share Science and Technology Innovation Board on July 16 with an issue price of 27.46 yuan. Its initial listing surged by more than 200%, with a market value of more than 600 billion yuan, and at one point during the trading session it reached 650 billion yuan.

According to SMIC's prospectus, based on the price of 27.46 yuan per share, the company's total fundraising is expected to be 46.287 billion yuan before the exercise of the over-allotment option; if the over-allotment option is fully exercised, the company's total fundraising is expected to be 53.230 billion yuan.

Tonight, SMIC issued an announcement that as of August 14, 2020, Haitong Securities has fully exercised its over-allotment option, and the final total amount of funds raised in this issuance is 53.23 billion yuan.

For the 53.2 billion yuan of funds raised, SMIC has previously announced its three major directions - 40% will be used for the 12-inch chip SN1 project, 20% of the funds will be used as reserve funds for the company's advanced and mature process R&D projects, and the remaining 40% will be used as supplementary working capital.

The SN1 project refers to the SMIC South Wafer Factory, a joint venture between SMIC and Shanghai, which is located in Zhangjiang High-tech Park in Pudong New Area. Its main contents include three large single buildings: SN1 production plant, CU8 power workshop and SO8 production dispatching and R&D building, as well as some supporting facilities.

The total construction area of ​​this project is about 400,000 square meters, making it the largest electronic factory project in the world. The SN1 project is expected to be officially completed in August this year.

The SN1 project is actually the first 14nm process production line in China. After completion, its production capacity can reach 35,000 wafers per month (the same is true for SN2). In the future, it will continue to be upgraded to more advanced processes, which will greatly enhance the domestic manufacturing capabilities of 14nm and below processes.