China’s top contract chipmakers pursue acquisitions amid Beijing’s self-sufficiency drive


Those big-ticket transactions – 8.27 billion yuan (US$1.2 billion) for Hua Hong and 40.6 billion yuan for SMIC – signalled a fresh round of consolidation in the country’s semiconductor industry, as Beijing’s tech self-sufficiency drive gathered pace amid heightened rivalry between China and the US.
The acquisition would help Hua Hong add a monthly production capacity of 38,000 65-nanometre and 40-nm chips, boosting its asset base and profitability, according to a filing with the Hong Kong stock exchange.

Hua Hong shares gained 9.42 per cent to close at HK$81.30 on Friday. SMIC’s stock in Hong Kong was up 5.11 per cent to close at HK$75.10.

The facade of Hua Hong Semiconductor’s headquarters in Shanghai. Photo: Handout
The facade of Hua Hong Semiconductor’s headquarters in Shanghai. Photo: Handout
SMIC had earlier announced that it would acquire the remaining 49 per cent stake it does not own in subsidiary Semiconductor Manufacturing North China (Beijing) Corp. (SMNC). The deal was first proposed in September.
  • Related Posts

    China blocks helium exports amid Iran war-driven supply crunch – Firstpost

    China on Friday announced a temporary suspension of helium exports, a move expected to help secure domestic supplies of the critical gas as the ongoing Iran conflict continues to disrupt…

    Continue reading
    Oil surges over 3% as Iran expands Gulf strikes after US attacks, Hormuz fears return – Firstpost

    Global oil prices climbed more than 3 per cent on Monday after Iran expanded its military strikes to Gulf states following fresh US attacks, reviving fears of supply disruptions through…

    Continue reading

    Leave a Reply

    Your email address will not be published. Required fields are marked *