China Chip Giant Hua Hong Set for $2.5bn IPO in Shanghai


China chipmaker Hua Hong Semiconductor Ltd has been given regulatory approval for a $2.5-billion IPO in Shanghai, a Hong Kong stock exchange filing said on Friday.

Hua Hong intends to use the money to fund a new fabrication plant in the eastern city of Wuxi, with construction to begin in 2023.

The planned initial public offering (IPO) comes as China’s chip companies gear up for steeper competition with the United States due to geopolitical tensions.

Washington has passed unprecedented export controls on Chinese chipmakers. In particular, it barred US equipment makers from selling tools to Chinese foundries for production of logic chips produced at 14-nanometers and below.

Also on AF: China Exports, Imports Fall in October as Global Demand Drops



Hua Hong’s Shanghai IPO will follow that of China’s Semiconductor Manufacturing International Corp (SMIC), which, like Hua Hong, went public on Shanghai’s tech-centric STAR market in 2020 after it listed in Hong Kong years earlier.

That IPO raised $6.6 billion, making it the largest-ever on the then-new board and the largest in China since 2010. SMIC’s IPO arrived just as tensions between the United States and China were heightening over semiconductor technology.

Hua Hong currently has four fabs in total – three 8-inch fabs in Shanghai, and one 12-inch fab in Wuxi currently expanding to 95,000 wafers per month. The proceeds from the IPO will also go to upgrading the latter fab, according to its prospectus.

Hua Hong specialises in mature technology, and generates most of its revenue making chips using 55-nanometer process technology. The company has a global market share of 3.2% of the foundry business, according to research firm TrendForce.


  • Reuters, with additional editing from Alfie Habershon


Read more:


Toyota’s Profit Drops 25% Due to Computer Chip Shortage


US Expects Allies to Back Chip Export Curbs on China


US Chipmaker Marvell Chops Research Staff in China




Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.

Recent Posts

Blacklisted Chinese Surveillance Maker in Saudi Fund Tie-Up

Dahua Technology will manufacture surveillance hardware in Saudi Arabia after signing a deal with a…

14 hours ago

US Targets China’s Top Chip Plant Over Huawei Mate 60 Pro Coup

Experts say that SMIC’s South fab is the only factory with the capability to make…

16 hours ago

SMIC, Huawei Big Winners as China Ramps Up Chip Funding

Local governments in Shanghai and Anhui will fund a variety of semiconductor-related projects this year…

18 hours ago

Generative AI Seen Having Big Impacts on Environment – Nature

Revelations about the amount of power and water needed for computers that power artificial intelligence…

18 hours ago

Russians Named as West Smashes Lockbit Ransomware Gang

US indictment seeks the arrest of two Russian cyber criminals after Britain's National Crime Agency…

20 hours ago

EU’s Green Tech Reliance on China ‘Worrying’ – Euractiv

Europe’s solar panel, wind turbine and electric vehicle manufacturing sectors are all wilting in the…

20 hours ago