Trace back to SMIC that it is Chinese-owned. The company's core executives are from Taiwan because TSMC's third largest shareholder holds 6.9% of the shares.

Is SMIC a mainland enterprise or a foreign-owned company? Why are the pilots all Taiwanese? Today the Strategic Planning Gunner will talk about this matter in detail.

The SMIC trademark mainly belongs to two companies, one is SMIC Manufacturing (Shanghai) Co., Ltd., this is the parent company, and the other is SMIC Holdings Co., Ltd., this subsidiary, the two Each company performs its own duties. The parent company is responsible for production and research and development, while the subsidiary company is responsible for market management.

The business types on the industrial and commercial information of these two companies are written as "wholly owned by foreign legal entities." They seem to be foreign-funded enterprises. What does it have to do with China?

This is about SMIC’s equity structure. When SMIC just started, it was full of twists and turns. The founder, Zhang Rujing, was passionate about serving the country and followed his father's orders to set up a factory in mainland China. However, due to U.S. policy restrictions, he could only adopt a curved approach and first established a factory in China as a foreign investor. Register the company in the Cayman Islands, set up a factory in Shanghai, and then go public in the United States and also be listed on the Hong Kong stock market.

In order to raise funds, Zhang Rujing’s mother used her church background to find the five major churches in the United States to endorse her, and assured the U.S. Department of Commerce that future chip products would only be used for industrial and civilian purposes and would not be used for military purposes. For specific purposes, it received investment from five overseas capitals including Walden International, Handin Asia Pacific, Goldman Sachs Capital, and Vertex Capital. Later, Zhang Rujing raised US$1.48 billion. At that time, foreign capital accounted for about 20%. The picture below is the early equity structure of SMIC.

In 2004, when SMIC was listed on NASDAQ in the United States, the largest shareholder was Shanghai Industrial, a state-owned enterprise founded by the Shanghai Municipal Government. At that time, the shareholding ratio reached 13. In 2009 , due to the patent dispute that lasted for several years, SMIC, which had been struggling with TSMC, finally reached a settlement with TSMC, and TSMC obtained 8 shares of SMIC.

In 2010, SMIC conducted a new share placement and raised US$100 million in funds. Since then, Datang Telecom has become the largest shareholder, holding 14.3% of the shares, and Shanghai Industrial has become the second largest shareholder, accounting for 14.3% of the shares. 8.7, TSMC is the third largest shareholder with a share of 6.9.

In 2011, SMIC introduced strategic investment, and China's large central enterprise China Investment Corporation invested US$250 million in SMIC, taking 11.6% of SMIC's shares, replacing SIIC as the The second largest shareholder. At this time, the top three shareholders of SMIC are all state-owned capital.

In 2013, SMIC once again issued convertible bonds, Datang Telecom and China Investment Corporation increased their stakes again, and Datang Telecom’s shareholding at this time was close to 20%. In 2015, my country established the National Integration Corporation The circuit industry fund aims to support the development of domestic semiconductor companies. SMIC became the first batch of support targets.

At the end of 2015, the National Integrated Circuit Industry Fund subscribed for 4.7 billion new shares of SMIC, with its shareholding reaching 11.58. In 2016, the top three shareholders of SMIC were: Datang Telecom, accounting for 17.16. National Integrated Circuit Industry Fund, accounting for 15.91 shares, and Tsinghua Unigroup, accounting for 9.35 shares.

SMIC has been operating for many years. The main shareholders are state-owned capital, and foreign capital accounts for less than 5% of the total shares. However, this does not affect the company type positioning at the time of registration. So, some people may ask, why does SMIC want to introduce a large amount of state-owned capital? This starts from two points.

First, Zhang Rujing’s original intention when he founded SMIC was to serve the country. One of the company’s missions was to “promote China’s semiconductor industry.” So from the bottom of his heart, he was not willing to SMIC was eventually controlled by foreign capital.

Second, SMIC has always hoped to find large state-owned electronics companies with strong government background to invest in it.

Because according to China's national conditions, the joining of large state-owned enterprises will help SMIC enjoy more benefits and priority support in striving for major industrial funds and industrial supporting policies such as the national "863" and "11th Five-Year Plan" special projects.

So, to sum up, at present, SMIC is a chip company that can properly represent China’s manufacturing. No matter how complicated its background is, it will be led by the Chinese themselves, because Taiwanese are Chinese, and Taiwanese are patriotic. We should give them more opportunities. Please give them your applause as well!