Tag Archives: SMIC

CHIPS: SMIC Taps Beijing’s Chip Ambitions with New $10 Bln Plant

Bottom line: SMIC’s new plan for a $10 billion cutting-edge chip plant shows it could be well positioned to find a place on the global stage by tapping strong government support after an overhaul of its own operations.

SMIC announces $10 bln chip plant

I rarely write these days about SMIC (HKEx: 981; NYSE: SMI), since the company once billed as China’s best hope to challenge global chip giants like Intel (Nasdaq: INTC) and TSMC (Taipei: 2330) has been a major disappointment since its Hong Kong listing a decade ago. But the company’s newly announced plan for a $10 billion cutting-edge plant was enough to catch my attention, and shows SMIC could become a company to watch due to Beijing’s sudden determination to build  up a globally competitive chip sector at any cost. Read Full Post…

CONSUMER: Midea, SMIC on European Buying Spree

Bottom line: Midea’s purchase of Germany’s Kuka and Italy’s Clivet, and SMIC’s purchase of Italy’s LFoundry represent a wave of opportunistic buying by Chinese firms in Europe, with more such deals to come under Beijing’s directive to go global.

Midea buys Italy’s Clivet

A sluggish European economy, made worse by last week’s shock Brexit, is providing fertile shopping ground for Chinese firms, with 3 large deals in the headlines as the new week begins. Two of those involve home appliance maker Midea (Shenzhen: 000333), whose controversial and very expensive plan to buy a big stake in German robotics maker Kuka (Frankfurt: KU2G) looks set to reach a final agreement this week. At the same time, Midea has reached another deal to buy an Italian rival in the air conditioner space. Last but not least, faded semiconductor maker SMIC (HKEx: 981; NYSE: SMI) has announced another deal in Italy to buy the smaller rival LFoundry. Read Full Post…

China News Digest: June 25, 2016

The following press releases and news reports about China companies were carried on June 25. To view a full article or story, click on the link next to the headline.
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  • PBOC to Study Alibaba’s (NYSE: BABA) Shadow Banking Activities, Zhou Says (English article)
  • MediaTek (Taipei: 2454) Calls on Taiwan to Ease Limits on Investment from China (Chinese article)
  • MIIT Says Licensed Non-Telcos Allowed to Provide Free Voice Service (Chinese article)
  • Qualcomm (Nasdaq: QCOM) Sues Meizu for Patent Infringement (Chinese article)
  • SMIC (HKEx: 981) to Buy 70 Pct of Italy’s LFoundry for 49 Mln Euros (HKEx announcement)

China News Digest: February 19, 2016

The following press releases and media reports about Chinese companies were carried on February 19. To view a full article or story, click on the link next to the headline.
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News Digest: December 31, 2015

The following press releases and media reports about Chinese companies were carried on December 31. To view a full article or story, click on the link next to the headline.
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  • China to Increase Wind, Solar Power Capacity by 21 Pct in 2016
  • McDonald’s (NYSE: MCD) Supplier OSI China Trial Concludes in Shanghai (English article)
  • China Investment Corp (CIC) Sells Down SMIC (HKEx: 981) Stake (HKEx announcement)
  • Hareonsolar De-listing Risk Up After United PV (HKEx: 686) Acquisition Hits Obstacle (Chinese article)
  • China Telecom (HKEx: 728) Announces Resigation of Chang Xiaobing as Chmn, CEO (HKEx announcement)

MULTINATIONALS: AMD Flees China’s Crumbling Chip Sector

Bottom line: AMD’s sell-down of its China assets, and a record fine against Qualcomm earlier this year reflect China’s fading attraction for global chip makers due to technical and bureaucratic obstacles.

AMD sells down China operations

A trio of headlines from the chip-making sector is showing just how much China has lost its luster for big multinationals, as logistical and technological issues dog this once-promising industry. Leading the headlines is word that struggling US chip maker AMD (NYSE: AMD) is selling most of its Asia-based foundry business, including sizable China operations, to a Chinese partner.

That was followed by announcement of a new very domestic chip-making joint venture anchored by SMIC (HKEx: 981), China’s largest contract foundry that at one time had hopes of becoming a global giant. Last but not least is a headline showing that US giant Qualcomm (Nasdaq: QCOM) was the main recipient of China’s recent anti-monopoly fervor, paying 90 percent of the penalties meted out by one of the nation’s main anti-trust regulators in 10 cases so far this year. Read Full Post…

RETAIL: Shanghai Wins Big With Wanda Group Relocation

Wanda to relocate HQ to Shanghai

Shanghai may be famous for its entrepreneurial spirit, but its track record isn’t quite so stellar when it comes to nurturing top entrepreneurs. That could be starting to change, however, with word that Dalian Wanda Group, one of China’s most dynamic companies, plans to move its headquarters to Shanghai from its current location in Beijing.

As a longtime foreigner living in Shanghai, I’ve always been surprised by the relatively small number of major private companies for a city of our size. We should certainly be proud of some of our city’s most outstanding entrepreneurs, with names like Guo Guangchang of Fosun Group and Spring Airlines (Shenzhen: 601021) Chairman Wang Zhenghua as 2 outstanding examples. Read Full Post…

News Digest: February 26, 2015

The following press releases and media reports about Chinese companies were carried on February 26. To view a full article or story, click on the link next to the headline.
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  • China’s Postal Savings Bank Plans $25 Bln IPO: China Daily (English article)
  • NetEase (Nasdaq: NTES) Expands Global Presence With First HQ In The West (Businesswire)
  • WeChat Speeds Holiday Cash Gifts With Shakes, Red Envelopes (English article)
  • China Drops Leading Technology Brands For State Purchases (English article)
  • SMIC (HKEx: 981) In Talks To Acquire South Korea’s Dongbu HiTek – Sources (Chinese article)
  • Latest calendar for Q4 earnings reports (Earnings calendar)

COMPUTERS: SMIC Joins Group Buying Stats ChipPac

Bottom line: A new alliance between SMIC and a leading Chinese chip tester in the buyout of Singapore’s Stats ChipPac could be the latest signal of a Beijing-led drive to consolidate China’s chip sector.

SMIC joins group buying Stats ChipPac

The semiconductor world is buzzing today on news that a Jiangsu-based company will buy Singaporean semiconductor chip maker Stats ChipPac (Singapore: STAT), but what caught my attention was the name of leading Chinese chip maker SMIC (HKEx: 981; NYSE: SMI) as a member of the buyer group. I’ve been saying for many years now that China’s semiconductor sector is sorely in need of consolidation, but that such an overhaul is often blocked by the local stakeholders who often eschew mergers as they look after their own interests. Read Full Post…

News Digest: August 27, 2014

The following press releases and media reports about Chinese companies were carried on August 27. To view a full article or story, click on the link next to the headline.
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  • Sinopec (HKEx: 386), Tencent (HKEx: 700) Join To Develop Non-Oil Business (Chinese article)
  • Microsoft (Nasdaq: MSFT) Probe Also Includes Browser, Media Player – SAIC (Chinese article)
  • China Investment Corp Boosts SMIC (HKEx: 981) Stake To 12 Pct From 11.25 Pct (HKEx announcement)
  • KKR Agrees To Buy 18 Pct Of China Chicken Firm For $400 Mln (English article)
  • Trina Solar (NYSE: TSL) Announces Q2 Results (PRNewswire)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

Shanghai Street View: Troubled Technology

Maglev zooms into obscurity

This week’s Street View takes us to Shanghai’s rapidly aging Maglev train, which was once the city’s pride and joy when it first opened in 2004 offering the world’s fastest speeds in a commercial rail service. The Maglev celebrated its 10th anniversary this year, even as debate grows about a technology that has been overtaken by slower but less costly high speed rail trains in the last few years. Read Full Post…