Major Action in Semiconductors! Semiconductor Equipment Leader SMIC to Acquire Hangzhou Zhonggu, Trading Halted Starting Tomorrow

On the evening of December 18, leading semiconductor equipment company SMIC announced a major development: it plans to acquire Hangzhou Zhonggu's controlling stake through share issuance and raise supporting funds. The company's stock will be suspended from trading starting December 19, with an expected halt of no more than 10 trading days.

This acquisition is considered a "complementary strength" deal: SMIC specializes in dry process equipment such as plasma etching and thin film deposition, with products covering advanced processes from 65 to 5 nanometers; Hangzhou Zhonggu focuses on high-end CMP (Chemical Mechanical Planarization) equipment, with core products being 12-inch CMP machines, which are key wet process equipment in semiconductor manufacturing. Etching, thin film, and wet process equipment are among the most critical semiconductor process tools besides lithography machines. The collaboration will enable SMIC to take a significant step toward "platformization" and "grouping," providing customers with more comprehensive process solutions.

In terms of performance, SMIC has shown impressive results: revenue reached 8.063 billion yuan in the first three quarters of 2025, a year-over-year increase of 46.40%, with thin film equipment revenue growing over 13 times; net profit attributable to shareholders was 1.211 billion yuan, up 32.66% year-over-year. Previously, the company's stock price has increased by over 130% since September last year, with a latest market value of 170.8 billion yuan.

It is worth noting that the semiconductor industry is currently experiencing a sustained recovery. SEMI forecasts that global semiconductor equipment sales will reach a record high of $133 billion in 2025, and may rise to $156 billion by 2027, with AI-related investments serving as the core driving force. Institutions are also optimistic: Changcheng Securities pointed out that the semiconductor sector is experiencing simultaneous growth in revenue and profit, with a clear trend of profit recovery; Galaxy Securities mentioned that SMIC's capacity utilization rate has risen to 95.8%, confirming strong industry demand; Guojin Securities emphasized that under export controls, independent control of semiconductor equipment has become a clear mainline, and the localization process is accelerating.

This acquisition of Hangzhou Zhonggu by SMIC is not only a strategic expansion for the company itself but also aligns with the development trend of filling gaps and strengthening collaboration in the domestic semiconductor industry chain.