China’s Hua Hong foundry IPO set to raise $2.5 billion

Business news |
By Peter Clarke

Hua Hong Semiconductor Ltd., China’s second largest chip foundry after SMIC, has received approval for an 18 billion yuan (US$2.5 billion) in Shanghai, according to Reuters.

Hua Hong is already listed on the Hong Kong stock exchange but has filed a prospectus for a listing on the Shanghai Stock Exchange Science and Technology Innovation Board, otherwise known as the STAR market. In so doing Hua Hong will be following in the footsteps of SMIC, which has a Chinese dual listing after pulling out of the New York Stock Exchange in 2019 (see Chinese foundry SMIC plans to delist from NYSE).

China’s foundries are trying to build capacity in response to US-Chinese geopolitical uncertainty but face challenges over access to chip manufacturing equipment made by the US and its allies (see Advanced logic, memory, YMTC come under China export controls).

Another fab

Hua Hong plans to use the money to build a wafer fab in Wuxi, with construction beginning in 2023 and an eventual manufacturing capacity of 83,000 wafer starts per month.

These barred US-based equipment makers from supplying Chinese foundries with tools for the production of logic chips at 14nm or more advanced geometry.

Hua Hong is a specialty foundry that works behind the leading-edge of manufacturing process technology on such components as non-volatile memory, discrete power transistors, analog and power management, logic & RF.

Related links and articles:

News articles:

Advanced logic, memory, YMTC come under China export controls

Chinese foundry SMIC plans to delist from NYSE

Boom quarter for top ten chip foundries



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