Hua Hong Semiconductor Consolidates Domestic Capacity With $1.2B HLMC Acquisition

Hua Hong SemiconductorDealroom has a profile for this one. Try Dealroom →, China’s second-largest contract chipmaker, is moving to consolidate its manufacturing base with the acquisition of a 97.5% stake in its sister foundry Huali MicroelectronicsDealroom has a profile for this one. Try Dealroom → (HLMC) for about 8.27 billion yuan ($1.2 billion).

The deal will see Hua Hong Semiconductor acquire shares previously held by its state-owned parent Hua Hong GroupDealroom has a profile for this one. Try Dealroom → and several government-backed investment funds.

Once completed, the acquisition will add roughly 38,000 wafers of monthly capacity, focused on 65-nanometre and 40-nanometre processes. These mature technologies are widely used in automotive electronics, industrial systems and consumer devices, and remain in strong demand.

Hua Hong Group, founded in the mid-1990s, is one of China’s earliest semiconductor industrial groups, playing a central role in developing Shanghai’s chip manufacturing base.

Hua Hong Semiconductor, established in 2005 and listed in Hong Kong, has built its business around specialty and mature-node foundry services, positioning itself as a stable supplier of essential chips rather than a competitor in advanced logic.

Huali Microelectronics, founded in 2013, operates 12-inch wafer fabrication plants in Shanghai and has been a key contributor to capacity expansion within the group.

By bringing Huali more directly into its corporate structure, Hua Hong Semiconductor aims to simplify ownership, improve operational efficiency and strengthen its footing in segments of the semiconductor market that underpin much of the global electronics supply chain.

Sources:
South China Morning Post
Shanghai Securities News
China Times
TrendForce

Image source:
South China Morning Post

J.V.