Foundry Semiconductor Manufacturing Electronics Shaoxing Corp. (SMEC) has received approval for an initial public offering of shares on the Shanghai Stock Exchange’s STAR Market.
While IPOs have been cancelled or delayed on many stock exchanges outside China, there continues to be encouragement and an appetite for them within the People’s Republic as the government strives for self-sufficiency in semiconductors (see China’s Hua Hong foundry IPO set to raise $2.5 billion).
SMEC was founded in 2018 and operates as foundry making and packaging microelectromechanical systems chips and power devices. It plans to offer 1.69 billion shares to raise 12.5 billion yuan (about US$1.7 billion), according Caixin Global. The share offer is set to account for more than 10 percent and less than 25 percent of the company’s total holdings.
The money is earmarked for a second phase of SMEC’s wafer fab as well as R&D and working capital. The second phase of the wafer fab has a budget of 6.66 billion yuan (about US$930 million).