Chinese contract chipmaker Hua Hong raises 3 billion

Chinese contract chipmaker Hua Hong raises $3 billion

Manufacturers of semiconductor components in the PRC enjoy financial support from the government, however, these funds are not enough for stable development, which is why some of them regularly attract funds on the stock exchange. Hua Hong Semiconductor recently managed to place nearly $3 billion worth of shares.

    Image source: Caixin Global

Image source: Caixin Global

As explained BloombergIn the history of HSMC, as this company is also known, this share placement is not the first, the company had already raised 333 million US dollars in this way at its Hong Kong location in 2014, but the current placement was the largest in the entire Asia Pacific region since the beginning of the current year. The company specializes in custom processing of 200mm silicon wafers and its chips are used in the computer, communications and consumer electronics industries.

The placement of $2.96 billion of shares led to a 15% increase in the company’s securities listings after the opening of trading in Shanghai. As a result of the placement, HSMC sold 24% of its capital on the stock exchange, the shares were mainly distributed among 30 strategic investors and funds. Overall, the IPO market in China has shown weak momentum this year as investors are concerned about the slow growth rates of the local economy, the source said. SMIC, China’s largest contract chip maker, has long been under US sanctions. Therefore, it is important for the local industry to expand the business of other semiconductor manufacturers.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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