SMIC Secures First Regulatory Approval for Largest M&A in China Wafer Foundry

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Chinese semiconductor powerhouse has secured the first regulatory clearance for the largest merger and acquisition deal in the history of China’s wafer foundry industry.

The M&A and Reorganization Review Committee of the Shanghai Stock Exchange approved the company’s private placement yesterday, enabling it to fund the acquisition of the remaining shares it does not yet own in its North division. The deal is now under review by the regulatory authority.

The company plans to issue new shares to five shareholders, including a major investment fund focused on the integrated circuit industry, to buy their combined 49 percent ownership stake in the North division for approximately 40.6 billion yuan (around 6 billion USD). This move was outlined in a prior announcement released by the company, based in Shanghai.

This acquisition aims to strengthen the company’s asset quality, improve operational synergy, and support sustainable growth over the long term.

As of 10:55 a.m. in Shanghai today, the company’s shares traded marginally higher at 122.78 yuan (about 18.07 USD).

Founded in 2013 by the parent company, Zhongguancun Development Group, and Beijing Industrial Developing Investment Management, the North division is a prominent player in China’s wafer foundry landscape.

In the first eight months of last year, the division reported revenues of 9 billion yuan (roughly 1.3 billion USD), with a net profit of 1.5 billion yuan. In 2023, its revenue increased to 11.6 billion yuan with a net profit of 585 million yuan (around 86.1 million USD), and projections for 2024 estimate revenue at 13 billion yuan and net profit at 1.7 billion yuan.

As China’s largest wafer foundry, this company’s revenue last year rose over 16 percent to 67 billion yuan, while net profit grew by 36 percent to 5 billion yuan. According to TrendForce estimates, its global revenue from wafer manufacturing was approximately 9.3 billion USD in 2025, ranking third worldwide after Taiwan Semiconductor Manufacturing and Samsung.