China's biggest chipmaker, Semiconductor Manufacturing International Corp (SMIC), secured US$285 million in bank loans in its second financing exercise in four months, bringing its total capital to US$915 million ahead of an initial public offering (IPO) in April.
The Shanghai-based firm said it had secured a five-year loan with four banks – Shanghai Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications and Shanghai Pudong Development Bank – to expand its facilities.
SMIC plans to raise between US$750 million and US$1 billion through its IPO, in a move seen as ramping up the competition against rival Taiwan Semiconductor Manufacturing.
In December the Taiwan firm sued SMIC for patent infringement and misappropriation of trade secrets.