Semiconductor Manufacturing International Corporation recently published a report on its official website, stating that the company will transfer its 70% stake in LFoundry to Jiangsu CAS-IGBT Technology for USD113 million and the transaction is expected to be closed at the end of June 2019.

According to the report, SMIC decided to sell this Italian factory LFoundry basing on the consideration of its own operation and the overall development in the future. After the transaction, SMIC's management team will be able to focus on the future development of the company and they could gain positive return on the investment of the business.

LFoundry is a leading professional wafer foundry and it mainly provides the most advanced simulated manufacturing service, with monthly output of over 40,000 wafers. LFoundry owns a large number of combined process verification libraries, intellectual properties, design tools and reference processes. It mainly designs applications related to automobile and industry, covering central information system, security, smart, and embedded storage.

In June 2016, SMIC acquired a 70% stake in LFoundry for EUR49 million.