Advanced Semiconductor Manufacturing Corp (
The company, a Chinese chipmaker partly owned by Royal Philips Electronics NV, said orders and capacity use at its two Shanghai plants had picked up this year. It plans to use proceeds from the IPO to cut its more than 1 billion yuan (US$125 million) of debt and to fund capital expenditure.
Costs to build a plant making 8-inch wafers contributed to Advanced Semiconductor posting a loss last year, Tony Liu (
"We spent a lot of resources for the 8-inch investment," Liu said. "From here on, the capital expenditure will be moderate. It's time for us to enjoy the reward."
Chinese chipmakers are expanding to compete with rivals that are building larger, more efficient plants such as Taiwan Semiconductor Manufacturing Corp (
Advanced Semiconductor's share sale, due to be priced on Friday, follows a HK$14 billion IPO by Semiconductor Manufacturing International Corp (
Shanghai-based Advanced Semiconductor, which supplies custom-made chips to Philips, is offering 406.7 million shares at between HK$1.36 and HK$1.85 each. The company, founded in 1988, focuses on making chips used in smart
cards, microwave ovens and other consumer electronics such as identification cards.
Advanced Semiconductor forecast it will at least break even in the six months ended June 30, according to its IPO prospectus. The company had a net loss of 75 million yuan (US$9.35 million) last year on revenue of 931.6 million yuan. It had a profit of 182.7 million yuan in 2004, the prospectus showed.
Advanced Semiconductor shares are expected to start trading on April 7.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has appointed Rose Castanares, executive vice president of TSMC Arizona, as president of the subsidiary, which is responsible for carrying out massive investments by the Taiwanese tech giant in the US state, the company said in a statement yesterday. Castanares will succeed Brian Harrison as president of the Arizona subsidiary on Oct. 1 after the incumbent president steps down from the position with a transfer to the Arizona CEO office to serve as an advisor to TSMC Arizona’s chairman, the statement said. According to TSMC, Harrison is scheduled to retire on Dec. 31. Castanares joined TSMC in
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the
FACTORY SHIFT: While Taiwan produces most of the world’s AI servers, firms are under pressure to move manufacturing amid geopolitical tensions Lenovo Group Ltd (聯想) started building artificial intelligence (AI) servers in India’s south, the latest boon for the rapidly growing country’s push to become a high-tech powerhouse. The company yesterday said it has started making the large, powerful computers in Pondicherry, southeastern India, moving beyond products such as laptops and smartphones. The Chinese company would also build out its facilities in the Bangalore region, including a research lab with a focus on AI. Lenovo’s plans mark another win for Indian Prime Minister Narendra Modi, who tries to attract more technology investment into the country. While India’s tense relationship with China has suffered setbacks