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

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Huahong Semiconductor, China’s second-largest chip foundry company, announced an investment of $2 billion to build a new factory, aiming to meet the growing demand for AI-driven chips.

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Hong Kong stock exchangeHua Hong Grace SemiconductorWuxi

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Hua Hong Grace Semiconductor1
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S SCMP Tech en 2026-09-02 17:30

Hua Hong Grace Semiconductor, the second-largest contract manufacturer in China, is investing $2 billion in expanding its wafer production capacity in Wuxi to meet the growing demand for AI infrastructure and comply with U.S. technology restrictions. This funding will be used to build a new 12-inch production line, the third facility the company has established in the eastern city of Wuxi. Hua Hong Grace Semiconductor submitted documents to the Hong Kong Stock Exchange on Tuesday to disclose this plan.