How does SMIC solve the "difficult?"

The 12th Five-Year Plan is urging people to forge ahead. The grand plan of China's semiconductor industry, SMIC, is also very attractive. However, what is the most difficult thing to achieve in order to achieve the goal? Financing.

As the saying goes, "Strictly speaking women can hardly be free of rice." Therefore, in addition to establishing a new corporate culture, strengthening management, and technological breakthroughs, and actively expanding the domestic demand market, SMIC is the most critical in terms of funding.

Competitors' investment in increasing global OEMs has become increasingly fierce. TSMC, currently number one, has undergone fundamental changes since the “father” Zhang Zhongmou took over the power again. The most important thing is that its investment strength has increased significantly. Such as 1.8 billion U.S. dollars in 2008, 2.67 billion U.S. dollars in 2009, and 5.9 billion U.S. dollars in 2010, recently announced that the investment in 2011 will reach 8 billion U.S. dollars.

In addition to actively expanding its production capacity in Dresden and Singapore, another Globalfoundries invested US$4.2 billion in its new 12-inch production line in New York State and will start production in 2012. In addition, it has been announced that 2011 would add another investment doubled, to $ 5.4 billion.

In addition, Samsung and Intel, which were originally IDM, have also been involved in the logic chip foundry business.

The above shows that SMIC’s competitors’ investments have continued to increase. Compared to SMIC, although others may be envious of the country’s background, they will give huge support, but in reality they are entangled with various issues. The international financing issue has not received enough attention and support. Analyze SMIC's various possible financing channels, including obtaining R&D grants from special projects 01 and 02, expanding the proportion of state-owned constituents, and issuing loans to the country.

Judging from the current situation, the SMIC may have relatively certain channels to obtain funds from special tasks and loans from the National Development Bank. These two items are very important, but they are still not enough, especially the interest from the development bank loan is too high. High, it is too heavy to bear about 20% of the gross profit margin.

However, with regard to the current situation, the gap that SMIC wants to invest 2 billion U.S. dollars a year is still very large. If it can not always obtain enough funds, it will seriously affect its goal.

The recent BOE's successful financing report is thought-provoking, and it feels BOE's approach may be a shortcut to SMIC.

The secrets of BOE financing have been hugely refinanced by BOE almost every year since 2006. In the past five years, the CCP has conducted four large-scale refinancings, with almost no miss. According to statistics, which are four times refinance the private placement, a total of up to 25.1 billion yuan.

Investors participating in BOE’s private placement seem to have turned a blind eye to the poor performance of BOE’s main business. In the case of the private placement and the listing Report December 10, 2010 disclosure shows that additional BOE round total of seven companies involved, almost exclusively to state-owned background.

In the face of huge losses the same earnings, BOE policy is undoubtedly a special "pet." National Development and Reform Commission high-tech Secretary Qi Chengyuan, said China must support two industries is "a core of a screen", but the chip investment cycle is long, high technical difficulty, the large Chinese and foreign technology gap is not easy to catch; LCD The screen is China's own technology, which is likely to catch up with an industry within a few years, thus becoming an important task and major project in China. BOE, the only company with independent intellectual property rights, has become the first choice for government support. HC Home Home HC electronic network information technology exhibition semiconductor integrated circuit character LED lighting Sell Buy wonderful graphics Register Now Sign sale through real-time communication site navigation HC electronic network Home> Column> Industry Courier> Semiconductor> Text Search Information Information Buying Supply Enterprise Technology Forum IC Design LED Lighting Solar Cell SMIC How to Solve "Financing Difficulties"? 2011/4/11/8:31 Source: Mo Dayang In addition, the local government has also become a major force in supporting BOE. It is reported that 3 billion yuan in the 6th-generation Hefei line project of the BOE is directly funded by the investment company of the Hefei Municipal Government. In addition, the 8th-generation line project in Beijing was launched as a strategic cooperation agreement between BOE and the Beijing Municipal Government during the worst financial crisis in 2008. The Beijing Municipal Government directly invested 8.5 billion yuan as the project's start-up capital, and later injected 4.5 billion yuan through a private placement.

In addition, the syndicated bank led by the China Development Bank has become the promoter of tens of billions of financing for BOE. According to an insider from the China Development Bank, one of the major responsibilities of the China Development Bank is to support the country's key industrial projects. Therefore, several loans to the syndicated bank on BOE projects were led by the China Development Bank and led BOE to find other banks. Participate and promise to "get in your pocket."

Conclusion SMIC and BOE are very similar, but not exactly the same. The integrated circuit industry involves the security of the country and is also the foundation of the electronics industry. It needs to raise one of the country's key supporting industries to reconsider at the national level. For its development, it is not enough to only stay in love and hate iron. It is necessary to find solutions and take actions as soon as possible. For SMIC, in addition to actively creating conditions for the rapid listing of domestic A shares, how to make SMIC's contribution to China's semiconductor industry really large, and to make everyone understand and accept is also very critical.