Chinese contract chipmaker Hua Hong Grace Semiconductor is investing US$2 billion in a joint venture to build its third facility in Wuxi, bringing total project funding to US$4.2 billion with state backing. The expansion will construct a new 12-inch specialty line, adding 55,000 wafers to monthly capacity—a 30 percent increase. The move aims to meet surging domestic AI demand and bypass US technology curbs.
Hua Hong Wuxi fab expansion
- ▪Chinese contract chipmaker Hua Hong Grace Semiconductor is investing US$2 billion to build a new 12-inch specialty line in Wuxi, China.
- ▪Hua Hong Grace Semiconductor and its Shanghai subsidiary are providing US$1 billion and US$1.1 billion respectively, holding a controlling 51 percent stake in the Wuxi joint venture.
- ▪Hua Hong Grace Semiconductor's capacity expansion in Wuxi is aimed at meeting skyrocketing domestic demand for artificial intelligence infrastructure.
- ▪The total funding for Hua Hong Grace Semiconductor's Wuxi expansion project will reach US$4.2 billion, including state capital injections.
- ▪Hua Hong Grace Semiconductor's Wuxi expansion is intended to bypass United States technology curbs on Chinese chip production.
State-backed Big Fund investment
- ▪Hua Hong Grace Semiconductor's Wuxi project is a joint venture with state-backed investment entities, including the Hua Xin Fund.
- ▪The Hua Xin Fund serves as an investment vehicle for China's National Integrated Circuit Industry Investment Fund, also known as the 'Big Fund'.
12-inch wafer capacity increase
- ▪The new 12-inch specialty line in Wuxi will represent Hua Hong Grace Semiconductor's third facility in the eastern Chinese city.
- ▪Once fully operational, the Wuxi expansion will add 55,000 wafers to Hua Hong Grace Semiconductor's monthly production capacity, representing a roughly 30 percent increase to its total Wuxi capacity.
Story comments
Loading comments…