03 Jun 2020 Jane Whitmoore
China’s Biggest Chip Maker Plans To Raise $2,8 Billion In An IPO
The largest silicon chip producer in China, SMIC, filed a $2,8 billion IPO proposal in partnership with Bitcoin mining rig producer Canaan. The filing comes amid increased trade tension between China and the United States.
On May 15, the U.S. Department of Commerce imposed further bans on Huawei, stating that all non-U.S. chip makers, which use U.S. technology, have to undergo a licensing procedure. The restrictions, however, attacked not only Huawei but also Taiwan’s largest chip-making facility - Taiwan Semiconductor Manufacturing Company (TSMC), which made the company stop orders to Huawei. Also on May 15, TSMC announced its plans to deploy a $12 billion chip production plant in the state of Arizona.
Meanwhile, the Chinese government gave SMIC a state boost of $2,2 billion, and with the added IPO funds, SMIC will be on the lookout for new tech and production innovations. However, China’s 14nm tech advancements still lack the 5nm chip production plans of Taiwan’s TSMC.
Interestingly, the 14nm technology of SMIC is well-suited for Canaan’s Bitcoin mining rig manufacturing. The two companies announced a strategic partnership, which would allow SMIC to become a leader in the manufacturing of microchips in the East Asia region.
Crypto mining expert Kristy-Leigh Minehan stated that despite “SMIC has to catch up with the recent advancements, SMIC would be seen as a domestic alternative to Samsung and TSMC.”
“SMIC would provide a boost in ASIC mining rigs for the altcoin market as well. China leads the pack for altcoin demand, so it won’t be strange if we have an ASIC chip, dedicated to a specific cryptocurrency.”, Minehan added.
Minehan also noted that the forthcoming IPO would be “successful”, as China needs a cutting-edge chip manufacturing facility, which eventually would serve the international crypto mining industry. The crypto mining expert also considers that further SMIC-oriented partnerships, including a Huawei-SMIC mobile phone, compatible with China’s DC/EP stablecoin project.
cryptocurrency mining Altcoin News Cryptocurrency Crypto Market mining crypto china cryptocurrencies altcoins cryptocurrency news cryptocoin Mining Software
