Hua Hong Semi Plans Joint Investment to Build 55,000-Wafer Monthly 12-Inch Fab
Hua Hong Semiconductor and its wholly owned subsidiary Shanghai Hua Hong plan to jointly increase capital in Wuxi Hua Hong Phase III with three partners to build a 12-inch specialty process wafer foundry line with a monthly capacity of about 55,000 wafers. The project will raise the target company's registered capital to USD 4.17 billion, with Hua Hong entities holding a combined 51% stake.
Hua Hong Semiconductor announced on September 1 that it, together with its wholly owned subsidiary Shanghai Hua Hong, plans to jointly increase the capital of Wuxi Hua Hong Phase III Semiconductor Co. , Ltd. with Wuxi Xihong Guoxin Phase II Investment Co. , Huaxin Dingxin (Beijing) Equity Investment Fund (Limited Partnership), and China Development Bank New Policy-Oriented Financial Instruments Co. The funds will be used to build a 12-inch specialty process wafer foundry line with a monthly capacity of approximately 55,000 wafers.
The target company currently has a registered capital of RMB 6.68 million and is wholly owned by Shanghai Hua Hong. After the investment is completed, the target company's registered capital will be USD 4.17 billion, of which Hua Hong Semiconductor will contribute USD 1.0425 billion and Shanghai Hua Hong will contribute USD 1.0842 billion, giving the two parties a combined 51% stake in the target company. The investment is still subject to approval by the company's shareholders' meeting.
Why this event matters
The event has a measured impact on 1 industry. The strongest current signal is positive for Semiconductor Value Chain, with intensity 70/100 and 80% confidence over a long term horizon.
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