Hua Hong Semiconductor to Acquire 97.5% Stake in Shanghai Huali Microelectronics
Hua Hong Semiconductor is set to acquire a 97.5% stake in Shanghai Huali Microelectronics for approximately RMB 8.27 billion. This deal aims to streamline China's foundry sector amid geopolitical pressures and enhance Hua Hong's manufacturing capabilities, including additional capacity of 38,000 wafers per month. With this acquisition, Hua Hong is expected to solidify its position as China's second-largest contract chipmaker and improve its competitiveness in mature-node technologies critical to various markets.
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Hua Hong Semiconductor plans to acquire a 97.5% stake in Shanghai Huali Microelectronics for around RMB 8.27 billion, a move that consolidates China's semiconductor sector. This acquisition will add Huali's mature-node technologies and 38,000 wafers per month of capacity to Hua Hong's operations.
By the end of 2025, Hua Hong was the world's sixth-largest foundry, and this deal is anticipated to enhance its position in the market. The acquisition is supported by state-linked investment vehicles and aims to reduce fragmentation within China's foundry sector.
The consolidation reflects a broader trend of mergers and acquisitions among Chinese chipmakers to improve efficiency amid U.S.-led export controls and growing competition. Industry experts believe this will impact pricing dynamics in the mature-node foundry market.
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