China Securities Regulatory Commission Approves Semiconductor Manufacturing International Corporation's Acquisition of 49% Stake in Northern Hua Hong

SMIC received approval from the China Securities Regulatory Commission on May 21, 2026, for its registration application to issue shares to purchase 49% equity in SMIC North. After the transaction is completed, SMIC North will become a wholly-owned subsidiary of SMIC.

According to the announcement, SMIC will issue a total of several billion shares through a private placement to five institutional shareholders. It will issue 357 million shares to the National Integrated Circuit Industry Investment Fund, 101 million shares to the Beijing Integrated Circuit Manufacturing and Equipment Equity Investment Center, 642.1 million shares to Beijing Yizhuang International Investment Development Co., Ltd., and 12.56 million shares to both Zhongguancun Development Group and Beijing Industrial Development Investment Management Co., Ltd.

This approval is valid for 12 months from the date of issuance, which means that SMIC's share repurchase of core assets has officially entered the substantive delivery stage.