Shanghai-based semiconductor wafer manufacturer Hua Hong Semiconductor announced at the Hong Kong Stock Exchange (HKEx) on Monday that its board of directors had approved the preliminary proposal for a possible listing to the Shanghai Sci-Tech Innovation Board (STAR Market).
The announcement shows that the issuance scale of Hua Hong Semiconductor shall not exceed 25% of the issued share capital of the company, after the proposed issuance and allotment of RMB shares according to the proposal, and all of them shall be carried out by issuing new shares. The raised funds are currently intended to be used for business development and general working capital.
Established in 2005, Hua Hong Semiconductor is a subsidiary of Huahong Group and focuses on wafer foundries with eight-inch and 12-inch production lines. The company’s products cover embedded nonvolatile memory, power devices, analog and power management, logic and radio frequency and other differentiated manufacturing process platforms. By the end of 2020, the company’s eight-inch wafer production capacity was 178,000 wafers per month, accounting for about 3% of the global total, making it the second largest foundry enterprise located within the Chinese mainland.
Hua Hong Semiconductor has three eight-inch wafer factories in Jinqiao Town and Zhangjiang Town, Shanghai, with a monthly production capacity of about 180,000 wafers. In addition, the company has a 12-inch wafer factory with a monthly production capacity of 48,000 wafers in Wuxi, a city near Shanghai.
Because of a global shortage of semiconductors, the price of wafers has been rising. In the first three quarters of 2021, Hua Hong Semiconductor’s revenue was 7.372 billion yuan ($1.16 billion), a year-on-year increase of 56.66%. The net profit attributed to parent company owner’s was 830 million yuan, a year-on-year increase of 129.16%.