China’s SMIC to Split Off Solar, Packaging Units

SHANGHAI (Reuters) – Semiconductor Manufacturing International Corp (0981.HK) (SMI.N), China’s top contract chip maker, plans to split off its solar cell and its chip packaging and testing units and list their shares in the not-too-distant future, a company official said on Thursday.

The official gave no further details, but Taiwan’s Commerical Times newspaper reported on Thursday that SMIC planned to expand its solar cell operations by setting up new production lines in Shanghai.

The paper added that SMIC would also combine its Chengdu and Shanghai packaging and testing operations and seek foreign investors, with plans to list the unit domestically after three years if it can achieve profitability in its first year.

A listing for the unit overseas or on a planned domestic board for start-ups was also possible within the next year or two, it added. (Reporting by David Lin; Writing by Edmund Klamann; Editing by Jacqueline Wong)