On the evening of April 22, SMIC issued an announcement announcing that it would sell all the equity interests of its holding subsidiary SMIC Changjiang. The transaction was valued at US$397 million and a net profit of US$210 million was recorded.

The subsidiary sold by SMIC is called SJ Semiconductor Corporation. In the newly disclosed 2020 annual report, the abbreviation of the target company is "SMIC Changdian (Cayman)".

According to the announcement, SMIC Changjiang Electronics (Cayman) was established in August 2014 as an exempted limited company incorporated in the Cayman Islands. Currently, SMIC, the National Integrated Circuit Fund, and Jiangsu Changjiang Electronics Technology Co., Ltd. Co., Ltd. ("Jiang Electronics Technology") and Qualcomm have 55.87%, 29.31%, 8.62% and 5.86% equity interests. The remaining 0.34% equity is jointly held by multiple employees of the target company.

SMIC is mainly engaged in chip packaging business. In 2016, it cooperated with Qualcomm for 14nm wafer bump packaging. In 2017, it cooperated with Qualcomm for 10nm wafer bump packaging. It is the first industry chain in mainland China that has 10nm advanced process technology nodes. Semiconductor company.

SMIC believes that the company will get a positive return on investment from the transaction. The directors also believe that the terms of the share transfer agreement are fair and reasonable and are normal commercial terms, and the transaction is in the overall interests of the company and its shareholders.

After excluding estimated taxes and fees of US$21 million, SMIC expects the net proceeds from the transaction to be approximately US$210 million. SMIC intends to use the net proceeds from the transaction for the company's daily operations.