16. Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
|
|
|
|
|
|
|
Plant and |
|
Office |
|
in progress |
|
|
|
|
|
Land |
|
Buildings |
|
equipment |
|
equipment |
|
(CIP) |
|
Total |
|
|
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014 |
|
— |
|
325,344 |
|
8,472,186 |
|
120,072 |
|
1,088,080 |
|
10,005,682 |
|
Transfer from (out) CIP |
|
— |
|
263,476 |
|
985,820 |
|
14,966 |
|
(1,264,262) |
|
— |
|
Addition |
|
— |
|
— |
|
— |
|
— |
|
1,498,201 |
|
1,498,201 |
|
Disposals |
|
— |
|
— |
|
(53,550) |
|
(180) |
|
(654) |
|
(54,384) |
|
Reclassified as held-for-sale |
|
— |
|
— |
|
— |
|
— |
|
(114,534) |
|
(114,534) |
|
Balance at December 31, 2015 |
|
— |
|
588,820 |
|
9,404,456 |
|
134,858 |
|
1,206,831 |
|
11,334,965 |
|
Business combination |
|
2,485 |
|
42,612 |
|
63,519 |
|
290 |
|
4,213 |
|
113,119 |
|
Transfer from (out) CIP |
|
— |
|
93,535 |
|
2,338,662 |
|
34,546 |
|
(2,466,743) |
|
— |
|
Addition |
|
— |
|
— |
|
— |
|
— |
|
2,597,970 |
|
2,597,970 |
|
Disposals |
|
— |
|
— |
|
(283,420) |
|
(2,136) |
|
(9,257) |
|
(294,813) |
|
Balance at December 31, 2016 |
|
2,485 |
|
724,967 |
|
11,523,217 |
|
167,558 |
|
1,333,014 |
|
13,751,241 |
|
Transfer from (out) CIP |
|
— |
|
174,143 |
|
1,696,092 |
|
31,355 |
|
(1,901,590) |
|
— |
|
Addition |
|
— |
|
— |
|
— |
|
— |
|
2,425,697 |
|
2,425,697 |
|
Disposals |
|
— |
|
(28,543) |
|
(767,210) |
|
(3,588) |
|
(5,518) |
|
(804,859) |
|
Balance at December 31, 2017 |
|
2,485 |
|
870,567 |
|
12,452,099 |
|
195,325 |
|
1,851,603 |
|
15,372,079 |
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
|
|
|
|
|
|
|
Plant and |
|
Office |
|
in progress |
|
|
|
|
|
Land |
|
Buildings |
|
equipment |
|
equipment |
|
(CIP) |
|
Total |
|
|
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
Accumulated depreciation and impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014 |
|
— |
|
121,680 |
|
6,758,071 |
|
103,514 |
|
27,331 |
|
7,010,596 |
|
Disposal |
|
— |
|
— |
|
(51,840) |
|
(180) |
|
(437) |
|
(52,457) |
|
Depreciation expense |
|
— |
|
13,858 |
|
451,027 |
|
8,123 |
|
— |
|
473,008 |
|
Balance at December 31, 2015 |
|
— |
|
135,538 |
|
7,157,258 |
|
111,457 |
|
26,894 |
|
7,431,147 |
|
Disposal |
|
— |
|
(289) |
|
(33,917) |
|
(2,136) |
|
(11,611) |
|
(47,953) |
|
Depreciation expense |
|
— |
|
18,133 |
|
639,986 |
|
15,042 |
|
— |
|
673,161 |
|
Impairment loss |
|
— |
|
— |
|
— |
|
— |
|
7,529 |
|
7,529 |
|
Balance at December 31, 2016 |
|
— |
|
153,382 |
|
7,763,327 |
|
124,363 |
|
22,812 |
|
8,063,884 |
|
Disposal |
|
— |
|
(5,819) |
|
(108,370) |
|
(1,822) |
|
(5,231) |
|
(121,242) |
|
Depreciation expense |
|
— |
|
41,243 |
|
839,351 |
|
25,440 |
|
— |
|
906,034 |
|
Balance at December 31, 2017 |
|
— |
|
188,806 |
|
8,494,308 |
|
147,981 |
|
17,581 |
|
8,848,676 |
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
|
|
|
|
|
|
|
Plant and |
|
Office |
|
in progress |
|
|
|
|
|
Land |
|
Buildings |
|
equipment |
|
equipment |
|
(CIP) |
|
Total |
|
|
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
Balance at December 31, 2015 |
|
— |
|
453,282 |
|
2,247,198 |
|
23,401 |
|
1,179,937 |
|
3,903,818 |
|
Balance at December 31, 2016 |
|
2,485 |
|
571,585 |
|
3,759,890 |
|
43,195 |
|
1,310,202 |
|
5,687,357 |
|
Balance at December 31, 2017 |
|
2,485 |
|
681,761 |
|
3,957,791 |
|
47,344 |
|
1,834,022 |
|
6,523,403 |
Construction in progress
The construction in progress balance of approximately US$1,834.0 million as of December 31, 2017, primarily consisted of US$753.0 million of the manufacturing equipment acquired to further expand the production capacity at two 300mm fabs in Beijing, US$186.1 million of the manufacturing equipment acquired to further expand the production capacity at the 300mm fab and the investment of a new Shanghai project, US$601.4 million was for our new 300mm fab in Shenzhen, US$125.1 million was for expand the production capacity at the 200mm fab in Tianjin and the investment of a new Tianjin project, US$101.8 million of machinery and equipment acquired to more research and development activities at the subsidiary for the new technology research and development in Shanghai. In addition, US$66.6 million was related to various ongoing capital expenditures projects of other SMIC subsidiaries, which are expected to be completed by the end of 2018.
Impairment losses recognized in the year
In 2017, the Group didn’t recorded (2016: US$7.5 million and 2015: nil) impairment loss of equipment. The whole amount of impairment loss in 2016 was recognized as other operating expense in profit or loss.
Assets pledged as security
Property, plant and equipment with carrying amount of approximately US$362.3 million (2016: approximately US$631.4 million and 2015: approximately US$323.9 million) have been pledged to secure borrowings of the Group under a mortgage (Note 31). The Group is not allowed to pledge these assets as security for other borrowings or to sell them to other entities.
Finance lease
The net carrying amount of the Group’s fixed assets held under finance leases included in the total amounts of facility machinery and equipment at December 31, 2017 was US$5.5 million (December 31, 2016: US$7.0 million and December 31, 2015: nil.