China’s No 2 foundry Hua Hong invests US$2b in new fab to meet surging AI-driven demand

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Chinese foundry Hua Hong Grace Semiconductor plans a US$2 billion investment to build a new fab in Wuxi, expanding chip production capacity to meet rising AI demand and bypass US technology restrictions. This marks the company's third facility expansion in the region.

Major Chinese foundry Hua Hong Grace Semiconductor is pouring US$2 billion into a massive capacity expansion in the Chinese chip production hub of Wuxi, racing to meet skyrocketing domestic demand for AI infrastructure and bypass US tech curbs. The fresh capital would fund the construction of a new 12-inch speciality line, its third facility in the eastern Chinese city, the country’s second-largest contract chipmaker said in a filing to the Hong Kong stock exchange on Tuesday. Once fully...