SMIC. Photo: VCG

 Chinese chipmaker Semiconductor Manufacturing International Corporation (SMIC), announced on Wednesday a deal for $1.2 billion worth of purchase orders with Dutch mask aligner manufacturing giant, ASML, based on an amended and restated volume purchase agreement.

In a filing to the Hong Kong stock exchange, SMIC disclosed that it had entered into the volume purchase agreement with ASML Shanghai on February 1, which offers a one-year extension to the original term that was from January 1, 2018 to December 31, 2020. 

The new agreement is valid through the end of the year. 

The purchase orders with an aggregate consideration of $1.2 billion for the supply of machinery used in producing wafers, were made pursuant to the amended agreement, over a 12-month period, from March 16, 2020.

Shares of SMIC edged up in both Hong Kong and Shanghai listings on Wednesday. 

ijiwei.com published on Monday that SMIC has received US licenses to import equipment for use in advanced processes. 

The electric research team, under the Industrial Securities Research Center, also verified the news that one US supplier had obtained authorization, and two other companies are still waiting for approval results. Chances are they will get it too. 

The team's report noted that licenses involving technologies, for 14nm chips and above have been granted, but for 10nm and below, licenses have not yet been issued. 

SMIC said later on Monday that it would continue to work with global supply chain partners to make sure it can continue to manufacture products. It added that its capacity expansion plan remains unaltered and, although uncertainties remain, they are confident that the company's short-term manufacturing won't be affected by major negative factors.

Global Times