China chipmaker SMIC receives $2bn state help amid Huawei ban

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Beijing/Taipei - from nikkei.com, May. 22, 2020 – 

China's Semiconductor Manufacturing International Corp. will receive a $2.25 billion infusion from state investment funds to underwrite the development and production of chips intended to counter new sanctions levied by the U.S.

Funds run by the Chinese government and the city of Shanghai will inject the capital into an SMIC group company that operates a plant in the city. The transaction, which will occur before the end of the year, will cut SMIC's stake to 38.5% from 50.1%.

This move comes as Taiwan Semiconductor Manufacturing Co. has stopped taking new orders from Huawei Technologies due to tougher U.S. restrictions against the telecommunications equipment leader. TSMC had served as Huawei's go-to chipmaker after the mainland company lost access to American suppliers.

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