China state funds double down on Hua Hong in legacy chip push
Por Ann Cao — South China Morning Post – News feed
Advertisement Semiconductors Tech Big Tech China state funds double down on Hua Hong in legacy chip push
State investors increase support for the contract chipmaker and a new Wuxi fab as Beijing strengthens domestic semiconductor supply
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Ann Cao in Shanghai Published: 4:30pm, 9 Oct 2026 Updated: 4:40pm, 9 Oct 2026 Chinese state funds are ramping up support for the country’s second-largest contract chipmaker, pouring billions of yuan into the parent of Hua Hong Grace Semiconductor and a new manufacturing facility to fuel Beijing’s drive for self-reliance in mature-node chips. The capital blitz, spanning Hua Hong’s Shanghai-based parent company and a fabrication plant in Wuxi, highlights how government-coordinated financing is doubling down on domestic foundries, as Washington tightens technology restrictions on China .
Registered capital of Hua Hong Group, the Shanghai- and Hong Kong-listed chipmaker’s owner, surged to 19.7 billion yuan (US$2.9 billion) from 13.5 billion yuan, according to a stock exchange filing on Thursday. The 6.2 billion yuan injection was led by Shanghai Guosheng Group, a state-backed investment vehicle.
Following the transaction, Guosheng’s direct stake in Hua Hong Group would jump to 41.7 per cent from 15.3 per cent, while its indirect holding would rise to 10.2 per cent from 3.8 per cent.
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