Chipmaker SMIC to get $600M loan from Chinese banks

China’s largest chipmaker, Semiconductor Manufacturing International Corp. (SMIC), is close to finalizing the terms of a loan worth up to US$600 million, a company spokeswoman said Tuesday.

SMIC expects to complete negotiations for the loan from a group of Chinese banks by the end of this month or in early June, said Reiko Chang, a spokeswoman for the company, in Shanghai. She did not disclose the names of the banks that are involved in the talks.

SMIC had sought financing from the U.S. Export-Import Bank in February to buy chip-making equipment but the request was not approved. “It was put on hold,” Chang said.

The loan SMIC is seeking from the Chinese banks is not meant to replace the U.S. loan, Chang said, calling this loan “a separate issue.”

Chang declined to comment on how SMIC intends to spend the money it is seeking from the Chinese banks.

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