Global Markets
Home›Global Markets›China›Hua Hong Grace to invest US$2 billion in new chip fab…
Hua Hong Grace to invest US$2 billion in new chip fab in Wuxi
The expansion is expected to add 55,000 wafers per month, roughly lifting Wuxi capacity by about 30%.
Hua Hong Grace Semiconductor says it is investing US$2.0 billion to expand chip-making capacity in Wuxi, a major production hub in eastern China, as domestic demand for AI infrastructure rises. The company is aiming to increase output while working around US technology curbs, according to a filing to the Hong Kong stock exchange.
The new project will fund construction of a 12-inch speciality line, its third facility in Wuxi. When fully operational, the expansion is expected to add 55,000 wafers to monthly production capacity, which the company says is roughly a 30% increase in its total Wuxi capacity.
The funding plan calls for Hua Hong and its Shanghai subsidiary to contribute US$1.0 billion and US$1.1 billion, respectively, with state entities providing the remaining capital. Together, the state injection is expected to bring total project funding to US$4.2 billion, the filing said.