SMIC Photo: Xinhua

China's biggest chipmaker, Semiconductor Manufacturing International Corp (SMIC) witnessed a staggering 246 percent jump in its share price, following its debut on Shanghai's Sci-Tech innovation board on Thursday.  

For its Shanghai listing the company issued its shares at 27.46 yuan ($3.93) per share, raising 46.28 billion yuan in total. Shares were traded at 95 yuan at the open, a 246 percent rise. 

SMIC is the biggest chipmaker in China. Often known as a contract ship manufacturer, it is a key provider of integrated circuit wafers from 0.35 microns to 14 nanometers to its clients. Its major competitors include TSMC in Taiwan and South Korea's Samsung Electronics. 

SMIC's stock surge with its new listing in Shanghai follows its share rise in Hong Kong. Since March its market capitalization in the Hong Kong Stock Exchange has doubled to around $29 billion. In 2004 it was also listed on the New York Stock Exchange, raising $1.7 billion, but has now delisted from the US exchange. 

SMIC is widely seen as a key part of China's efforts to boost competitiveness in technology and the money it has raised on the stock market will likely be put into development of its technologies.

The company's product represents the middle of the manufacturing chain in circuit supply, with massive demand for capital, according to a report by the Hengtou Securities. 

The company is planning on building two new factories, which could contribute an additional $1 billion of net profit, according to a report by Guosen Securities. 

The expansion of its global production will benefit both upstream suppliers and downstream design companies and customers. 

The sector is currently on the receiving end of increasing pressure from international trade tensions, notably efforts by the US to suppress technology companies like Huawei, also a client of SMIC. 

Global Times