Hua Hong Semiconductor is set to close a US$1.2 billion deal, days after SMIC announced it will take full control of a subsidiary for US$5.8 billion. These moves align with Beijing’s drive for semiconductor self-sufficiency.
China’s two leading contract chipmakers, Hua Hong Semiconductor and SMIC, are advancing acquisitions to bolster Beijing’s self-sufficiency strategy in semiconductors. Hua Hong is poised to finalize a US$1.2 billion deal, just days after SMIC announced full control of a subsidiary for US$5.8 billion.
Hua Hong shares rose 9.42 per cent on Friday, closing at HK$81.30. SMIC’s Hong Kong-listed stock climbed 5.11 per cent to HK$75.10. These developments highlight the expansion in China’s chip sector, backed by entities like the Shanghai Integrated Circuit Industry Fund and China Integrated Circuit Industry Investment Fund.
Key players mentioned include Taiwan Semiconductor Manufacturing Co, Samsung Electronics, Shanghai Guotou Pioneer Fund, and locations such as Beijing, Shanghai, and Hong Kong. The acquisitions aim to enhance China’s position in the global semiconductor supply chain amid external pressures from the US.
