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SMIC raises new loans for 300mm Shanghai fab |
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Jun 08, 2006 at 09:44 AM |
 Semiconductor Manufacturing International Corporation (SMIC) has secured a 5-year term loan of $600 million US dollars from 18 banks, both international and PRC based for its Shanghai cluster of fabs.
"This represents SMIC's debut in the international syndicated loan markets and we are very pleased that we have received overwhelming support from a large number of international and PRC banks," Dr. Richard R. Chang, Chief Executive Officer of SMIC. "In total, eighteen banks, including ten international and eight PRC banks from eight different countries/regions have participated in this Facility. This Facility, one of the largest syndicated loans closed in China so far this year, was significantly oversubscribed - having received a total commitment of close to US$850 million. This Facility will provide significant benefits to SMIC Shanghai and will support SMIC Shanghai's future growth through improved loan pricing, more flexible loan covenants and extended maturity."
SMIC is currently constructing a second dedicated 300mm fab within the fab cluster of 200mm facilities in Shanghai. The facility is expected to be completed by the end of 2006 with tool install expected in 1Q07. The new funds are believed to be allocated to capital equipment purchases for the new 300mm fab.
The foundry also announced at the end of May that it had secured $300 million US dollars from a group of Chinese banks in a 5-year loan to assist in the production ramp of its 200mm fab in Tianjin, Fab7.
The foundry expects to spend $1.1 billion US dollars on capital expenditure in 2006.
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