Shanghai Guosheng Leads 6.2 Billion Yuan Injection into Hua Hong Group

On Thursday, a stock exchange announcement revealed that Shanghai Guosheng Group, a state-supported investment entity, spearheaded a capital infusion of 6.2 billion yuan into Hua Hong Group, which owns the contract chipmaker listed in Shanghai and Hong Kong. This infusion raises Hua Hong Group's registered capital from 13.5 billion yuan to 19.7 billion yuan (approximately US$2.9 billion). Consequently, Guosheng's direct ownership in Hua Hong Group escalates from 15.3 percent to 41.7 percent, while its indirect stake grows from 3.8 percent to 10.2 percent. This investment is part of Beijing's initiative to bolster domestic semiconductor production and enhance legacy chip manufacturing, with state investors increasing their backing for the contract chipmaker and a new facility in Wuxi.