According to Zhitong Finance App News, Huahong Hongli (688347.SH) announced that the company and its wholly-owned subsidiary Shanghai Huahong Hongli Semiconductor Manufacturing Co., Ltd. (“Shanghai Huahong Hongli”) plan to jointly increase the capital of Wuxi Huahong Hongli Phase III Semiconductor Co., Ltd. with Wuxi Xihong Guoxin Phase II Investment Co., Ltd. to build a 12-inch specialty process wafer foundry production line with a monthly production capacity of about 55,000 pieces/month.

After the completion of this investment, the registered capital of the target company was US$4.17 billion, of which the company invested US$1,042.5 million and Shanghai Huahong Hongli invested US$1,084.2 million. This foreign investment is an important step for the company to build on long-term development, expand the scale of semiconductor production capacity, and consolidate and enhance market competitiveness. After the capital increase is completed, the target company is still a holding subsidiary of the company, which can help accelerate the construction of related projects and increase production capacity with the financial and resource support of various joint ventures.

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