Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 0981) (“SMIC” or the “Company”), one of the leading semiconductor foundries in the world, today announced that its wholly-owned subsidiary, Semiconductor Manufacturing International (Tianjin) Corporation (“SMIC Tianjin”), has entered into a US$300 million 5-year loan facility with a group of banks located in the People’s Republic of China (the “Loan”). The proceeds of the Loan will help to expand the capacity at SMIC’s 200-mm fab located in Tianjin. SMIC will guarantee SMIC Tianjin’s obligations under the Loan.
China Construction Bank led the arrangement of the Loan with other participants, which include China MingSheng Bank, China Development Bank, Industrial and Commercial Bank Of China, Agricultural Bank of China, Bank of China, China Merchants Bank, China BoHai Bank, Bank of Communications, and Bangkok Bank.
Dr. Richard R. Chang, Chief Executive Officer of SMIC, said, “We are pleased that with strong support from our banking partners, the Tianjin loan is significantly oversubscribed – exceeding our target loan amount by US$150 million. We plan to use the loan proceeds and internally generated cash flow to fund the Tianjin fab expansion.
SMIC (NYSE:SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) manufacturing service at 0.35um to 90nm and finer line technologies. Headquartered in Shanghai, China, SMIC operates three 8-inch fabs in Shanghai and one in Tianjin, and one 12-inch fab in Beijing, the only one of its kind in Mainland China. SMIC has customer service and marketing offices in the U.S., Italy, and Japan as well as a representative office in Hong Kong.