China-based Semiconductor Manufacturing International Corporation (SMIC) enters automotive IC manufacturing area by deciding to acquire a 70% stake in Italy-based semiconductor foundry LFoundry for 49 million EUROs. Lfoundry is not a deep node digital chip making expert but a domain specialist focusing on automotive semiconductor chip making, which is owned by LFoundry Europe GmbH and Marsica Innovation S.p.A. After this deal Lfoundry Europe GmbH and Marsica Innovation S.p.A. to own 15% each.
SMIC is a fast-growing foundry making 28 nm chips. SMIC is mass producing Qualcomm Snapdragon 425 Processor. With the annual revenue of US$2.24 billion in 2015, SMIC reported a revenue of US$634.3 million in its recent quarter, an increase of over 24% Y-O-Y, where as the Lfoundry has generated a revenue of 218 million EURO in 2015.
SMIC says it's total production capacity will be increased by 13% from the present 162,000 8-inch wafers per month and 62,500 12-inch wafers per month by adding LFoundry's capacity of 40,000 8-inch wafers per month.
Through this acquisition SMIC's area of expertise gets expanded into automotive, security, and industrial related applications including CIS, smart power, touch display driver ICs , embedded memory adding to its present area of expertise of RF, connectivity, power management IC , CMOS image sensors, embedded memory, and MEMS.