China (LAWFUEL) – DLA Piper today announced it has advised Datang Telecom Technology & Industry Holdings Co., Ltd. (″Datang″) in its acquisition of a US $171.8 million stake in Semiconductor Manufacturing International Corporation (″SMIC″). Dr Liu Wei, Beijing Office Managing Partner, DLA Piper and Client Relationship Partner for Datang, Stephen Liu, Partner from the Beijing office and Eugene Choi, Senior Associate from Hong Kong led the deal providing multi-department and multi-jurisdictional support to Datang.
″This acquisition creates a very strong alliance. With Datang’s proven innovation capabilities in the space of mobile telecommunications, and SMIC’s semiconductor manufacturing expertise, the partnership will spur development in both industries, riding on the potential of China’s 3G technology,″ said Dr Liu Wei. ″We are helping Datang to ensure a smooth, successful transaction through the seamless cooperation of DLA Piper offices in Beijing, Hong Kong and Shanghai.″
DLA Piper advised Datang on all legal aspects of the transaction while Deustche Bank AG served as the financial adviser to Datang. The acquisition marks a further step in the development of China’s semiconductor and mobile telecommunication industries, leveraging the country’s rapidly developing TD-SCDMA third generation (3G) business.
Alastair Da Costa, Asia Managing Director of DLA Piper, added: ″At a time when global capital markets are experiencing volatility, this deal reflects the confidence of Datang in capturing domestic opportunities as well as enhancing international competitiveness. It also reflects the strengths of our team at DLA Piper, advising clients through all cycles of the economy and market fluctuations.″
DLA Piper provided coordinated counsel across multiple practices with Steven Liu and Eugene Choi leading the deal and negotiation of documents, Jessica Zhao handling due diligence in Shanghai, and Xie Xiaoming as client liaison in Beijing. Mabel Liu and Jeffrey Mak provided general counsel, while Justin Davidson and Hank Leung provided intellectual property advice (all from HK office). Other members include He Zhou and Shirley Fu (both Shanghai), Jiabo Liu, Linda Huan and Cadence Wong (all Hong Kong).
About Datang Telecom Technology & Industry Holdings Co., Ltd.
Datang Telecom Technology & Industry Holdings Co., Ltd. is a subsidiary of Datang Telecom Technology & Industry Group, headquartered in Beijing. It is the international standard setter for TD-SCDMA 3G mobile telecommunications and a key promoter of the Chinese-developed technology for 3G mobiles. Datang is mainly engaged in the core business areas of TD-SCDMA 3G mobile telecommunication, wireless access, and integrated circuit design. It is a leader in China’s home-grown mobile telecommunication technologies.
About Semiconductor Manufacturing International Corporation
Semiconductor Manufacturing International Corporation (“SMIC”; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) foundry and technology services at 0.35um to 45nm. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, a 200mm fab under construction in Shenzhen, and an in-house assembly and testing facility in Chengdu. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 200mm wafer fab in Chengdu owned by Cension Semiconductor Manufacturing Corporation and a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation. For more information, please visit our website at www.smics.com.