Asia Domain Name Registration Limited: The impulse to the capital market
Asia Domain Name Registration Limited reports: In promoting the development of the Industrial(Domain Name), SMIC in the footsteps of capital markets were not charged, the company will be set up not long in Hong Kong Main Board and the New York Stock Exchange listing. In global capital flows to the major trend of China, SMIC become the fastest rising star of the semiconductor.
Perhaps precisely because the profit prospects of Semiconductor Manufacturing International Corp., makes it from the start been a strong financial support. Public information, in addition to the two listing and financing, in 2005, SMIC access to China’s 600 million U.S. dollars syndicated five-year loan, the SMIC in Beijing for 12-inch chip production line to expand capacity for providing financial support; December that year, Shanghai and the Netherlands are the two banks of 85 million euros long-term loan agreements for the purchase of lithography equipment SMIC; May 2006, SMIC Tianjin companies and 10 foreign banks in the form of syndicated signed a five-year , With a value of 300 million U.S. dollars loan agreement for the expansion of Tianjin 8-inch chip plant capacity; June, SMIC Shanghai, the company also received from eight different countries and regions composed of 18 banks 600 million U.S. dollars syndicated loan . SMIC in Shanghai and the first phase of loan 480 million U.S. dollars has been repaid in full in 2006.
At present, SMIC is working to adjust its business structure, to minimize the semiconductor industry by the dynamic random access memory (DRAM) market the trauma of this quarter will be full withdrawal from the DRAM market and main production logic (Logic) products.
The recent introduction of strategic investors, the news Geng Shiba SMIC again onto the outlet Langjian. The notice said that the SMIC will be the sale of shares or convertible instruments, may allow investors to buy large stake, may also become members of the Board. However, SMIC has not disclosed the identity of strategic investors.
In fact, this is almost a year, its fourth meeting on the strategy introduced hearsay.
Then in April last year, came three private equity fund plans to invest about 600 million U.S. dollars, SMIC shares from 20 to 25 percent stake in July, also rumors that China Electronics Group (CEC) wanted some cash for SMIC Equity or “co-shares” approach; September, another source said, SMIC and Shanghai Huahong NEC started early merger talks. But then all kinds of information are not below.
As global economic growth slowed down, investors in the IPO also tend to weak demand, private-equity firms looking for opportunities in Asia, the biggest challenge lies in the management of the company expected the value of the adjustment, which also makes SMIC And private equity firms or strategic partnership deal with the assumption that the great significance. (Asia Domain Name Registration Limited)
For strategic investors on the market on the suspect, Chang laughed Tyamzashe I could, “version is more of the many good reasons for investors are interested to contact, but we are still on stage, has not yet done The final decision. “According to reports, however, the Government hopes that SMIC giving priority to domestic good strategic partners.
SMIC currently the largest shareholder of Shanghai Industrial (Group), less than 10 per cent stake. According to SMIC originally envisaged, will be about 20 per cent stake in the transfer of foreign capital, would mean re-positioning their business ownership.
“In fact we have been considering the issue of A shares listed. Because the Government has a new law, financial advisers have told me in the A-share listed foreign-funded enterprises have been precedents, is now considered separate listing or listed as a whole, financial advisers Have different views. “Chang said, profits for three consecutive years in accordance with the conditions, this one in Shanghai has achieved.
Sitting in the SMIC building, known to Keji spirit of the SMIC Chief Executive Richard Chang Saturday Maishou still in the office of hard work. The face of great pressure on the operators of the semiconductor industry, his work is not easy. Although hard on Shanghai’s investment environment, he is still the gratitude of the Yiyuyanbiao.
“First Financial Daily”: SMIC why choose to invest in Shanghai before 2000 »
Chang: In fact, in 1997 we had wanted to come, we also have this team was called in to help Wuxi Huajing, on a company for a period of time.
In 2000 when mainland China’s semiconductor market to more robust demand, China needs high-tech. At that time, also inspected the Beijing, Shenzhen, and several other cities. In comparison, neighboring Shanghai, the largest design company, the company’s design team has more experience, then there is more than 40 (there are now about 120), the second is the overall infrastructure in Shanghai the most suitable, the most complete, whether the supply of raw materials Or to equipment suppliers are relatively complete, the original in Shanghai Caohejing Hi, Jinqiao has semiconductor plants, so relatively sound infrastructure; third is the efficiency of government departments in Shanghai, the municipal government on this project very much support, both leaders at all levels Very supportive.
“First Financial Daily”: At that time, the Shanghai government departments at all levels have done what support the work of «control seven years ago, Shanghai’s investment environment in which you appear to have taken place in changing»
Chang: The speakers also included the fact a lot of advantages, the Zhangjiang finalized on industrial clustering Zhangjiang because at that time, there is a complete living area. In policy terms, SMIC is in accordance with the central government at that time on the 18th to the text of the preferential policies, and provide supporting services in Shanghai, when the special place that has a total of 40 Suanxia Lai variety of concessions.
For example, at that time to ensure the stable power supply, provided a two-way power supply. SMIC has been the expansion in Shanghai, built a three 8-inch plant, a 12-inch plants, coupled with a photomask plant, a test plant, a bump factory, a factory image sensor, a solar power plant Therefore, the need for great power. 12-inch plants covered the last time a third of the electricity supply to come. This condition is very good, other places are difficult to include offshore, according to the best of our knowledge there are very few places around the world is three-way supply of electricity. Water is coming in two lines, one line if there are problems or maintenance can use another one. Particularly in commodity inspection and customs have the support of many, a lot of convenience.
“First Financial Daily”: (Asia Domain Name Registration Limited)SMIC in a short span of years was great, this high-speed development on the basis of what is it »
Chang: For SMIC’s growth over the past few years, we would like to thank the Government and the support of the community. In Shanghai, in particular, would like to thank the Shanghai Municipal Government the support of the decision clear and rapid action, we get a lot of support.
On the other hand the Chinese market is growing very quickly. From 2000 to 2005, an increase of more than four times, by the year 2005 has exceeded the United States and Japan as the world’s largest semiconductor market. So fast the speed of semiconductor development is very crucial factor is that the market is bigger. In addition Shanghai people here are very rich. In many aspects, for instance, let us have a good life, so that we can run schools, let us in attracting foreign staff have great advantages.
“First Financial Daily”: now SMIC’s competitiveness mainly in what is »
Chang: We have some advantages, other companies may be less easy to achieve. For example, SMIC’s production base in China, we back this huge and the fastest growing market, the world’s largest chip consumption market. In addition, the mainland has rich human resources of science and engineering, if Shanghai’s technology or production staff not enough, we could come to Jiangsu, Zhejiang and other provinces in the northeast or to find. And not only China’s human costs, water, electricity, natural gas and other resources compared with other countries still have the advantage.
“First Financial Daily”: the current challenges in what areas? »
Chang: It is now the opportunity to, on the one hand we have to quickly layout, different regions have different needs, so in different places have different R & D base, on the other hand is how to do a good job in our service points, including upgrading Each local production capacity and technological capabilities.
As China’s technology in many areas outside the limit by more SMIC in recent years through cooperation with international manufacturers, makes the restrictions on gradually changed, such as access to IBM announced last year on the 45-nanometer technology transfer, 0.15-micron not do before, now this is a big breakthrough. In fact, Western countries also have to thank for our friendship and support.
We used by the general strategy is to introduce the most advanced memory technology, which allows technical personnel familiar with the first such high technology, research and development of their own, before the 65-nanometer can be developed, very hard, because with 45-nanometer IBM to develop On faster. Outside the logic of technology leading to more, through such cooperation, from outside the introduction of unrestricted, so now can not produce DRAM, the full capacity to turn logic products. (Asia Domain Name Registration Limited)
“First Financial Daily”: the end of March the Ministry of Finance and State Administration of Taxation announced the latest enterprise incentive policies “and taxation on the 1st, 2008″, the semiconductor technology has certain tax incentives, the SMIC what real impact «Is how you look at the merger of the two tax issues?»
Chang: China’s tax policy I think are pretty good. We are now basically in accordance with the original text on the 18th “Five-free five halved” measures to make money after the first five years from income tax, after five years to pay half. As for the two taxes combined, personally feel that a good thing. To attract foreign investment because of the past to encourage foreign capital to come in so some tax concessions, but now foreign exchange deposits, now more eager to attract foreign investment, depreciation of the U.S. dollar, our currency deposits instead of high-impact, should not only focus on investment, But the industry should establish investment.