Semiconductor Manufacturing International (SMIC), China's largest semiconductor foundry, has announced that SMIC (Beijing) has signed a syndicated loan agreement for a total of US$600 million with a consortium of banks led by the China Development Bank and the Export-Import Bank of China. The new loan facility will primarily support SMIC's Beijing 12-inch fab expansion and technology development, SMIC said.

The other participants in the syndicated loan are China Construction Bank, Bank of Shanghai and Bank of Beijing, according to SMIC.

"This credit arrangement shows that major Chinese policy banks and commercial banks recognize the potential of our advanced 12-inch fab in Beijing. In addition, this loan facility strengthens our capital structure, achieving an improved balance between short term and long term debt," said SMIC CEO Tzu-Yin Chiu in a statement.

SMIC reported net losses of US$165.6 million for the fourth quarter of 2011, compared to losses of US$88.1 million in the prior quarter and profits of US$68.6 million a year ago, with revenues slipping 5.6% sequentially and 29% on year.