Chinese state funds are ramping up support for the country’s second-largest contract chipmaker, pouring billions of yuan into the parent of Hua Hong Grace Semiconductor and a new manufacturing facility to fuel Beijing’s drive for self-reliance in mature-node chips.
Registered capital of Hua Hong Group, the Shanghai- and Hong Kong-listed chipmaker’s owner, surged to 19.7 billion yuan (US$2.9 billion) from 13.5 billion yuan, according to a stock exchange filing on Thursday. The 6.2 billion yuan injection was led by Shanghai Guosheng Group, a state-backed investment vehicle.
Following the transaction, Guosheng’s direct stake in Hua Hong Group would jump to 41.7 per cent from 15.3 per cent, while its indirect holding would rise to 10.2 per cent from 3.8 per cent.
