STOCKS | Hua Hong Semiconductor Invests In Wuxi 12-Inch Wafer Line

Hua Hong Semiconductor (01347) said it will invest about $2.13 billion in Wuxi Hua Hong Semiconductor Phase III, which will build a 12-inch wafer production line with monthly capacity of about 55,000 wafers. According to ETNet, Wuxi Xihong Guoxin Phase II, Hua Capital Fund and a state-backed entity will invest $834 million, $626 million and $580 million in cash respectively in Wuxi Hua Hong Semiconductor Phase III. Hua Hong Semiconductor will hold a 51% stake in the venture. The group said total investment in Wuxi Hua Hong Semiconductor Phase III will be RMB 6.95 billion, of which $4.17 billion will be funded by joint venture shareholders through equity contributions, while the remaining RMB 2.78 billion will be raised through debt financing.