[News] SMIC Offloads Ningbo Stake to Local Chipmaker Goke Micro in Strategic Move

Amid China’s semiconductor consolidation wave to push back against U.S. pressure, local foundry giant SMIC announced on June 5 it is selling its full 14.83% stake in SMIC Ningbo to Shenzhen-listed Goke Microelectronics, according to Sina and the Science and Technology Innovation Board Daily.

Per Goke Microelectronics’ filing cited by the reports, it will also buy shares from 10 other stakeholders—including China’s state-backed Big Fund—using a mix of shares and cash. Once complete, the chipmaker will own 94.37% of SMIC Ningbo, with SMIC fully exiting the subsidiary, the reports suggest.

A Win-Win Deal?

Notably, Sina points out that for SMIC, offloading its stake in SMIC Ningbo is not just a routine asset sale, but a strategic move to sharpen its focus and upgrade its core business.

Sina says SMIC has been focusing heavily on advanced nodes, moving from 14nm mass production to breakthroughs in 7nm and 3nm. This move, therefore, shows its plan to streamline assets and invest more in sub-7nm nodes and specialty processes, strengthening its lead in high-end chip making, the report adds.

SMIC is said to be gearing up to make 5nm chips for Huawei this year using older DUV machines acquired before U.S. sanctions, according to a May report from Wccftech. However, challenges remain as it would incur higher costs and could also affect yields.

Goke Micro Takes Short-Term Hit for Long-Term Gain

According to the Science and Technology Innovation Board Daily, as of March 2025, SMIC Ningbo had net assets of around 1.57 billion yuan, but remains deep in the red—with a 2024 net loss of 813 million yuan and another 150 million yuan lost in Q1 2025.

In contrast, Goke Micro posted a modest 97 million yuan profit in 2024. As a fabless chipmaker, it offers products like 4K/8K decoders, AI processors, automotive SerDes chips, and Wi-Fi solutions, and is reportedly the first IC design firm to receive direct backing from China’s Big Fund, according to EE Times China.

Though the SMIC Ningbo acquisition may lead to a short-term net loss, Goke Micro’s strong foothold in memory and smart surveillance chips could soon expand into full-stack chipmaking through the move, the Science and Technology Innovation Board Daily reports.

The report notes that SMIC Ningbo focuses on specialty foundry services for RF front-end and MEMS sensor chips. Its 8-inch N1 line reportedly started production in late 2018, while the N2 line broke ground in 2020 and installed its first tools by mid-2021.

Read more

• [News] Chinese Chipmakers Ramp Up R&D Spending in 2024 — SMIC Tops the List with RMB 5.45B
• [News] SMIC Reported to Complete 5nm Chips by 2025, but Costs May Be 50% Higher Than TSMC’s

(Photo credit: Goke Micro)