News Article
SMIC hint at Japanese equipment purchase
Chinese foundry SMIC is reported to have sent a letter to the US Export-Import Bank last month threatening to purchase billions of dollars of manufacturing equipment from Japan rather than the USA.
Chinese foundry SMIC is reported to have sent a letter to the US Export-Import Bank last month threatening to purchase billions of dollars of manufacturing equipment from Japan rather than the USA.
This follows SMICs failure to secure a loan from the bank for US$870 million. The letter made it clear that if SMIC were to get a loan from Japan it would be reticent about doing future business with US companies.
US company Applied Materials had supported SMICs bid to get a loan from Ex-IM Bank on the understanding that the money would go on buying equipment from American companies.
But the financing was opposed by Micron Technologies, also of the US, on the grounds that it would increase competition against US companies. As a result the loan deal appeared to have stalled.
SMIC – which is still waiting to hear officially Ex-Ims decision on the loan - has admitted that it has had discussions with Japanese financiers for loans of a similar amount.
If SMIC decides to go with Japanese investors, then the biggest winner could be Applied Material's rival, Japan-based Tokyo Electron.
This follows SMICs failure to secure a loan from the bank for US$870 million. The letter made it clear that if SMIC were to get a loan from Japan it would be reticent about doing future business with US companies.
US company Applied Materials had supported SMICs bid to get a loan from Ex-IM Bank on the understanding that the money would go on buying equipment from American companies.
But the financing was opposed by Micron Technologies, also of the US, on the grounds that it would increase competition against US companies. As a result the loan deal appeared to have stalled.
SMIC – which is still waiting to hear officially Ex-Ims decision on the loan - has admitted that it has had discussions with Japanese financiers for loans of a similar amount.
If SMIC decides to go with Japanese investors, then the biggest winner could be Applied Material's rival, Japan-based Tokyo Electron.
