The sale of a strategic stake in Semiconductor Manufacturing International (SMIC), China’s biggest chipmaker, has stalled amid boardroom disagreements over which investor to choose, according to people familiar with the situation.

In March SMIC, which is listed in Hong Kong, appointed Morgan Stanley and Deutsche Bank to lead the sale process, a move that sparked a flurry of interest from private equity firms, which are expected to pay $500m for a 20 per cent stake.