Nearly 100 Core Staff Lost SMIC Board of Directors plunged into turmoil

SMIC (00981.HK) is currently in a race for internal power. However, whether major shareholders can take the opportunity to strengthen control, or the position of President Wang Ningguo is stable, SMIC may not be able to avoid a potential crisis in the short term.

Before the crisis, SMIC had experienced a painful quiet change. A resigned employee list obtained by this newspaper shows that as many as 91 core employees have resigned in the past 6 to 9 months.

The list shows that 91 employees, most of whom are level 45, are approximately equal to the deputy director in the SMIC system, that is, the rank of director, among which more than 60 have worked for more than 6 years.

Among 91 deputy chiefs and senior managers, including Chen Pinren, general manager of SMIC 8-inch plant, Zheng Wenhua, 12-inch director of Shanghai, Lin Dacheng, manager of Tianjin 8-inch plant, Chen Jincai, director of Wuhan 12-inch plant, and 12-inch factory in Beijing Long Cheng Meng Zhao, director of the Chengdu plant, Yi Guanjun, and Deng Juewei, head of the Shenzhen plant, are equivalent to the loss of executives from all production sites of the SMIC mainland in the past 6 to 9 months. In addition, Chen Yipeng, head of SMIC TD, has also left.

As of now, the SMIC operating system is clearly not optimistic, and even a dangerous sign: In 2010, one of the most core customers Broadcom once listed SMIC as the first of four global foundry partners, but SMIC declined earlier this year. As fourth, the reason is that the technical commitment has been postponed. Another top customer, Deyi China, also revealed recently that it is closely watching SMIC's performance.

The sources also revealed that due to the failure of the president and CEO Wang Ningguo to be elected to the board of directors on the 29th of last month, if the board had a bad situation, more senior executives would resign collectively and the middle level might also be turbulent.

At the shareholders’ meeting on the 29th of last month, after Wang Ningguo was elected as a director, a shareholder representative had dismissed Wang Ningguo’s resignation in disguise and promised to give three times the annual compensation.