中芯国际

Boardroom drama shakes China’s biggest chipmaker SMIC

Industry’s dependence on Taiwanese talent highlighted by co-CEO’s threat to resign

When Liang Mong-song threatened to quit as co-chief executive of China’s largest chipmaker, it was an extraordinary moment even for the notoriously hot-tempered industry veteran.

The departure of Mr Liang, 68, who joined Semiconductor Manufacturing International Corp in November 2017, would have amounted to declaring defeat in his quest to help China’s largest chipmaker catch up with international rivals such as Taiwan Semiconductor Manufacturing Corp and Samsung Electronics.

Last month, what appeared to be a resignation letter by Mr Liang circulated on Chinese social media, hitting SMIC’s shares. Mr Liang appears to be staying — he was included in SMIC’s latest public list of board members and executives, dated December 31. According to people close to him, negotiations are ongoing within management over resources and the company’s future focus.

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