[News] China’s 2nd-largest Foundry Hua Hong Unveils US$2B Wuxi Expansion, Adding 55K Wafers/M and 30% More Capacity

With capacity utilization already reaching 102.8% in 2Q, China’s second-largest foundry Hua Hong is moving to ease the bottleneck with a major expansion. According to EE Times China, the company and its consortium partners plan to invest more than RMB 10 billion (US$2 billion) in a new 12-inch specialty-process foundry line, adding 55,000 wafers per month.

The expansion will be centered in Wuxi, a major Chinese chipmaking hub, according to the South China Morning Post. Once fully ramped, the new capacity is expected to boost Hua Hong Grace’s total Wuxi output by roughly 30%, the report suggests.

EE Times China says the added capacity will help address shortages of power semiconductors and specialty analog chips in China. Meanwhile, Calian Press points to another potential growth driver: the booming memory market, which may be fueling Hua Hong Grace’s confidence in further expansion.

According to Calian Press, Hua Hong’s second-quarter revenue hit a record $717.5 million, up 26.8% YoY and 8.6% QoQ. Notably, its embedded non-volatile memory revenue during the period rose 41.8% YoY to $200.1 million, while standalone non-volatile memory revenue surged 149.3% to $68.8 million, making memory a key engine of the company’s strong growth, the report notes.

Wuxi Expansion Already Underway

Under the investment plan announced on September 1, Hua Hong Grace and its wholly owned subsidiary, Shanghai Hua Hong Grace Semiconductor Manufacturing Corporation, will jointly inject capital into Wuxi Hua Hong Grace Semiconductor Manufacturing Corporation Phase III alongside Wuxi Xihong Guoxin Phase II, Huaxin Dingxin, and a China Development Bank policy-based financial instrument entity, according to EE Times China.

National Business Daily reports that Hua Hong will contribute approximately US$1.043 billion, while Shanghai Hua Hong Grace will invest about US$1.084 billion. Together, the two entities will hold a 51% stake in the project company following the capital injection.

The deal will raise the registered capital of Wuxi Hua Hong Grace Phase III to approximately US$4.17 billion, with the funds earmarked for the development of the new specialty-process foundry project, the report adds.

National Business Daily also highlights that Hua Hong’s capacity expansion was already well underway before the latest investment. As of the end of June, all process equipment required for the 83K monthly capacity at its Wuxi Phase II project (Fab 9) had been moved in, with installation and commissioning underway, the report notes, adding the project is on track to reach its planned capacity by the end of 3Q.

National Business Daily reports a strong 1H26 performance from Hua Hong, with revenue rising 19.4% YoY to RMB 9.574 billion and net profit surging 437% to RMB 399 million.

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