A Huahong Group stand at the International Technology Fair in Shanghai, China, May 7, 2013. Credit: Imaginechina via AP Images
Business is booming at Hua Hong Semiconductor, China’s second largest chipmaker, even as tech export controls by Western countries present major headwinds to the industry.
The Shanghai-based chipmaker last week announced a plan to launch a $4 billion joint venture to expand its production lines amid strong demand for its chips. The company also has plans to raise $2.5 billion on the Shanghai STAR Market, which would be the third largest ever IPO on the city’s tech-focused bourse.
Hua Hong’s chip technology isn’t on the cutting edge: it lags behind industry leaders such as Taiwan’s TSMC and Korea’s Samsung. Nonetheless, it has carved out a profitable business making legacy chips for consumer electronics and automobiles. It also has some influential backers, including an investment firm linked to the family of China's former top leader, Jiang Zemin, who died in late November.
This week, The Wire looks at Hua Hong Semiconductor: its long history, influential
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