SMIC Gets a Lifeline
Several sources have reported that Datang will invest nearly US$172M in the struggling Chinese foundry. Trading in SMIC (SMI) was halted last week pending the release of “price-sensitive” news.
I guess that this sort of qualifies as a “bail out”, since Reuters reports that:
“Datang Telecom, an indirect unit of China’s State Development and Investment Corp, and China Academy of Telecommunications Technology…”
I’m glad that they have the extra rope, but they still have a lot of challenges ahead of them, and they’ve got a lot of catching up to do before they’re in TSMC’s league.
