Performance of IPO of Semiconductor Manufacturing International Corporation

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Corporate Profile of Semiconductor Manufacturing International Corporation

In less than four years, Semiconductor Manufacturing International Corp (SMIC) has become China's largest and the world's fifth-largest chip maker and it embodied the country's high-tech aspirations. Established in 2000, SMIC is headquartered in Shanghai. It has a strong Research and Development Team which is made up of experienced engineers from North America, Europe and Asia, and a network of leading international technology and manufacturing partners. Being an international corporation, SMIC has customer service and marketing offices in China, the U.S., Europe and Japan, and partners in Korea and Israel.

SMIC's biggest customers are based outside of China. Its top five clients last year were global heavyweights Samsung Electronics Corp, Toshiba Corp, Infineon Technologies AG, Texas Instruments Inc and Broadcom Corp.

In line with its strategic growth and development, SMIC, which is 11.4 percent-held by U.S. tech giant Motorola, plans to use the IPO this year to expand capacity at its Shanghai plant and to build chip foundries in Beijing.

SMIC's Hong Kong and New York listing is the world's third largest of 2004. Credit Suisse First Boston and Deutsche Bank are underwriting the IPO, which could value SMIC at up to $7.5 billion based on its plan to sell 20-25 percent of its equity.

Vital Statistics for SMIC

Date Incorporated April 2000

Revenue (2Q04) US$221.0 million

Total Assets (2Q04) US$4,329 million

Global Presence China, Japan, Europe and the United States

This paper aims to predict the share price movement after the IPO and give a critical commentary about the stock performance. The performance is also benchmarked against the theories predicting IPO share prices. Analysis for the moving of the stock price is also available.

Here are some of the financial highlights of the company:

Semiconductor Maker's Shares Drop in HK Stock...