contribution and equity holding can be subsequently adjusted according to the capital contributions of other third-party investors. The Company will be responsible for the operation and management of the Joint Venture Company.
The Company and BDAC have agreed to negotiate in good faith with a view to entering into a definitive agreement in respect of the proposed establishment of the Joint Venture Company.
INFORMATION OF THE COMPANY
SMIC and its subsidiaries collectively constitute one of the leading foundries in the world, is Mainland China's most advanced and largest foundry, broadest in technology coverage, and most comprehensive in semiconductor manufacturing services. The Group provides integrated circuit (IC) foundry and technology services on process nodes from
0.35 micron to 14 nanometer. Headquartered in Shanghai, China, the Group has an international manufacturing and service base. In China, SMIC has a 300mm wafer fabrication facility (fab), a 200mm fab and a majority-ownedjoint-venture 300mm fab for advanced nodes in Shanghai; a 300mm fab and a majority-owned 300mm fab for advanced nodes in Beijing; 200mm fabs in Tianjin and Shenzhen; and a majority-ownedjoint-venture 300mm bumping facility in Jiangyin. The Group also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan China, and a representative office in Hong Kong.
INFORMATION OF BDAC
Beijing Economic-Technological Development Area is the only state economic and technological development area in Beijing Municipality that enjoys the preferential policies of the state economic and technological development area and state high-tech industrial parks. BDAC implements unified leadership and management of the development area on behalf of the Beijing Municipal People's Government. To the best of the Directors' knowledge, information and belief, and having made all reasonable enquiries, BDAC and its ultimate beneficial owner are third parties independent of the Company and its connected persons (as defined in the Listing Rules).
REASONS FOR ENTERING INTO THE COOPERATION FRAMEWORK AGREEMENT
Seizing the opportunity of the Beijing Municipal government's development of the integrated circuit industry, the Project can meet the growing market and customer needs, enhance the Company's international market position and competitiveness, and promote the development of the integrated circuit industry of the Company and Beijing.
Under the cooperation with the Company, BDAC intends to provide support to the Company's development in Beijing in various aspects.