Zhong Guo Jing Ying Bao·2025-08-18 05:59Core Viewpoint - Huahong Semiconductor is planning to acquire Huahong Fifth Factory to resolve competition issues related to its IPO commitments, which will significantly enhance its 12-inch wafer foundry capacity [6][7][9]. Group 1: Acquisition Details - The acquisition involves purchasing the controlling stake of Shanghai Huahong Microelectronics, which operates Huahong Fifth Factory, and is aimed at addressing the competition issues between Huahong Semiconductor and its indirect controlling shareholder [5][7]. - The transaction is expected to be structured as a combination of issuing shares and cash payments, along with raising supporting funds [5][8]. - The acquisition is currently in the planning stage, with initial discussions taking place with potential transaction partners [8]. Group 2: Market Impact and Financial Performance - The acquisition is anticipated to significantly increase Huahong Semiconductor's 12-inch wafer production capacity, which is crucial for its growth in the specialty process foundry market [6][9]. - In the second quarter, Huahong Semiconductor reported a revenue of $566.1 million, marking an 18.3% year-on-year increase and a 4.6% quarter-on-quarter increase, with a gross margin of 10.9% [9]. - The company's production capacity utilization reached 108.3% in the second quarter, reflecting strong market demand for its products [9].