[ET Net News Agency, 3 January 2018] Semiconductor Manufacturing International
Corporation (SMIC) (00981) said it agreed to sell to its majority-owned subsidiary SJ
Semiconductor (Jiangyin) Corporation valued assets comprise of tangible assets and
intangible assets of the integrated circuit chip testing centre located at No. 18
Zhangjiang Road, Pudong, Shanghai, PRC for US$20 million.
The tangible assets include the physical assets that SMIC owns or use, which primarily
include, among others, machineries and equipment, jigs and documents. The intangible
assets include the intellectual property, business secret, business related customer
purchase order, business information, operational process and the right to use the
workplace and other relevant rights owned or used by SMIC.
SMIC is expected to realise a gain of about US$16.53 million (before taxation). The
proceeds will be used as general working capital of SMIC for its future business
development.
The purpose of the disposal was to transfer the business operation of the Shanghai
Testing Centre from SMIC to SJSemi and merge the business operation of Shanghai Testing
Centre to SJSemi. (HL)