Datang Telecom to Invest in SMIC

SMIC Press Release, 11/10/08

Chinese semiconductor firm Semiconductor Manufacturing International Corporation (SMIC) (NYSE: SMI, 0981.HK) has announced that mobile communications technology company the Datang Telecom Technology & Industry Group will purchase a 16.6% stake in SMIC for a price of USD 172 mln. Under the terms of the deal, Datang will purchase 3.7 bln new SMIC common shares at HKD 0.36 per share, and will have the right to nominate two representatives to SMIC's nine-member board of directors. Datang will also be able to nominate a vice-president at SMIC in charge of TD-SCDMA.

The deal is still pending approval from relevant government bodies.

Keywords: 0981.HK Datang Telecom hardware semiconductor SMI SMIC TD-SCDMA telecom 3G investment

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