Semiconductor Manufacturing International Corporation (SMIC), a contract chip manufacturer in China, is planning to acquire complete control of a subsidiary foundry, amid ongoing consolidation within the country’s semiconductor industry, South China Morning Post reported citing a company announcement.

SMIC intends to purchase the remaining equity stake in Semiconductor Manufacturing North China (Beijing) Corporation (SMNC), which is currently 51% owned by SMIC, the report said.

The acquisition will involve state-owned investors, including the China Integrated Circuit Industry Investment Fund, the Beijing Semiconductor Manufacturing and Equipment Equity Investment Centre, Beijing E-Town International Investment & Development, and Zhongguancun Development Group.

The company noted that the agreement is still in the preliminary stages, with certain elements of the transaction still being negotiated.

Following the announcement, SMIC’s shares listed in Shanghai were suspended for a maximum of ten trading days.

SMNC was founded in June 2013 with the objective of establishing significant manufacturing capabilities, particularly focusing on 45 nanometre and smaller technologies, aiming for a monthly capacity of 35,000 wafers, as stated in SMIC’s 2013 annual report.

In 2021, SMNC reported operating revenue of $1.51bn and a net profit of $314m, according to SMIC’s 2022 annual report.

In the first half of 2025, SMNC and another SMIC subsidiary, Semiconductor Manufacturing Beijing Corporation (SMBC), collectively generated revenue of 8.87bn yuan ($1.24bn).

The combined net profit for these two entities was 125m yuan.

For the first half of the year, SMIC reported a revenue increase of 22% year-on-year, reaching nearly $4.46bn, while net profit surged by 35.6% to $320m.

In August 2025, Hua Hong Semiconductor, the second-largest contract chipmaker in China, disclosed plans to acquire 97.5% of its sister foundry, Shanghai Huali Microelectronics.