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Why would SMIC do this? And how does this give the fresh capital? I'm guessing the Chinese Government is behind this.
More Chinese technology companies are looking to list locally amid recent tensions over U.S. listing requirements.
Semiconductor Manufacturing International Corporation (OTC:SMI), China's largest computer chipmaker, is planning to delist from the New York Stock Exchange this month and preparing for an offering on Shanghai's new Star market, FT reports.
That could give SMIC some of the fresh capital it needs to take on global competitors. "Technology wise, SMIC is at least five years away from TSMC," said Xu Tao, semiconductor analyst at Citic Securities.
Subject to liability exposure under US securities law with a US listing maybe?
My understanding is having a US listing means they could be prosecuted under US law for IP theft. Without a US listing, recourse is limited to what can be negotiated in trade agreements.
Subject to liability exposure under US securities law with a US listing maybe?
My understanding is having a US listing means they could be prosecuted under US law for IP theft. Without a US listing, recourse is limited to what can be negotiated in trade agreements.
In any jurisdiction where a product is used or sold, it's subject to local laws and most modern countries allow for IP protection for the sake of a better economy. TSM sued SMIC and won in two US jurisdictions even though they weren't listed stocks. Foreigners are not allowed to own Chinese stocks, but a VIE(Variable Interest Entity) out of the Cayman Islands which is a claim on their profits, which I feel is open to the whim of Chinese politics.
Very true but it also looks like a money grab. China needs a leading edge fab and SMIC is the best bet. This looks like a very savey political and financial move, absolutely.
"The Chinese company plans to raise Rmb20bn ($2.8bn) in Shanghai after raising $2.25bn from Chinese state-backed funds earlier this year. Government funding has also steadily increased, to about 7 per cent of revenues excluding deferred funding. SMIC took in $3.3bn in the year to April."
Subject to liability exposure under US securities law with a US listing maybe?
My understanding is having a US listing means they could be prosecuted under US law for IP theft. Without a US listing, recourse is limited to what can be negotiated in trade agreements.
