China's second-largest foundry, Huahong Semiconductor, is set to expand its production capacity once again.
Huahong's subsidiary, Huahong Hongli, announced on the evening of September 1 that it plans to establish a new semiconductor production line (Wuxi Phase 3) in Wuxi, Jiangsu Province. The new production line will have a capacity of 55,000 12-inch wafers per month, with a total investment of $4.1 billion. The company stated that this production line will focus on specialty process foundry services, producing power semiconductors, power management semiconductors, embedded and standalone non-volatile memory, and analog, logic, and RF semiconductors. These products are intended for use in AI data centers and autonomous vehicles.
Huahong is rapidly expanding its 12-inch production capacity in Wuxi. A notable example is the Huahong 9 Factory (FAB9), part of the Wuxi Phase 2 project, which was completed last year. By the end of last year, its production capacity reached 40,000 12-inch wafers per month. Additionally, by the end of June, the company completed the installation of additional processing equipment, and it has announced that the new production line will begin operations in the third quarter of this year. Once operational, the production capacity will increase to 83,000 wafers per month.
The Huahong 9 Factory announced another expansion plan in March. Equipment installation is scheduled for the fourth quarter of this year, with operations expected to commence next year. This line will also produce 55,000 12-inch wafers per month. Once this line is completed, the production capacity of the Huahong 9 Factory will rise to 138,000 wafers.
In the first half of the year, Huahong Semiconductor reported revenue of $1.37846 billion, a 24.5% increase compared to the same period last year. Notably, gross profit surged by 83.2%, improving profitability. Net income reached $59.57 million, a 4.1-fold increase. Revenue from the power management platform grew by approximately 40%, while the embedded non-volatile memory platform saw an increase of over 40%, and the standalone non-volatile memory platform rose by about 80%. Huahong Semiconductor stated, "The demand related to AI is having a distinctly positive impact on our specialty process foundry business," and projected that demand will remain strong in the second half of this year and into 2027, with prices continuing to rise.
* This article has been translated by AI.
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