Investing 10 billion USD, HuaHong signs an agreement with the Wuxi municipal government to build two additional 12-inch production lines.

On the afternoon of August 2, Shanghai HuaHong (Group) Co., Ltd. and the Wuxi Municipal People's Government held a signing ceremony for a strategic cooperation agreement in Wuxi. The HuaHong Group’s integrated circuit R&D and manufacturing base project—totaling approximately US$10 billion in investment—has officially been established in the Wuxi High-tech Zone, marking the launch of HuaHong Group’s first integrated circuit R&D and manufacturing base outside of Shanghai. It is reported that this collaborative project will involve the phased construction of several 12-inch integrated circuit chip production lines. The first-phase project will include a single 12-inch production line with a monthly capacity of about 40,000 wafers, along with related supporting facilities. Following the completion of the first-phase project, construction of a second production line will be initiated at an appropriate time. Jiangsu.

It is reported that this collaborative project will involve the phased construction of several 12-inch integrated circuit chip production lines. The first-phase project will include a 12-inch production line with a monthly capacity of approximately 40,000 wafers, along with related supporting facilities. After the completion of the first-phase project, the construction of a second production line will be initiated at an appropriate time.

Li Xiaomin, a member of the Standing Committee of the Jiangsu Provincial Party Committee and Secretary of the Wuxi Municipal Party Committee, warmly welcomed Zhang Suxin and her delegation to Wuxi, and expressed gratitude for Hua Hong Group’s strong support to Wuxi. He pointed out that Hua Hong Group is the implementing body of the nation’s “909 Project” and a key participant in the “910 Project,” serving as a leading enterprise in China’s integrated circuit industry. Wuxi is the site of the nation’s “908 Project,” and the two cities share a common origin, heritage, and development trajectory in the integrated circuit industry. The establishment of the Hua Hong project in Wuxi will play a critically important role in enhancing Wuxi’s status as the “National Southern Microelectronics Industry Base Center” and accelerating the city’s efforts to become an industrial powerhouse. Wuxi is committed to creating a first-class environment and providing top-notch services, working hand-in-hand with Hua Hong Group to usher in a new era of win-win development characterized by broader scope, deeper integration, and greater benefits.

Zhang Suxin, Chairperson of HuaHong Group, stated that today’s signing of a strategic cooperation agreement between HuaHong Group and the Wuxi Municipal Government marks an important milestone in responding to the nation’s strategic call to accelerate the development of the integrated circuit industry and implement an industrial layout strategy. It also signifies the launch of HuaHong Group’s first integrated circuit R&D and manufacturing base outside of Shanghai. The choice of Wuxi was based on the consensus reached between HuaHong Group and the Wuxi Municipal Government regarding the implementation of the overarching plans laid out in “Made in China 2025” and the “National Outline for Promoting the Development of the Integrated Circuit Industry.” Wuxi’s unique cultural environment, geographic advantages, and robust industrial foundation were key factors in this decision. The planning and construction of HuaHong Group’s R&D and manufacturing base in Wuxi reflect HuaHong’s commitment to serving and aligning with the nation’s overall strategy for the development of the integrated circuit industry, as well as its active integration into and support of the Yangtze River Delta regional strategy as promoted by Shanghai.

As a state-owned high-tech industrial group whose core business is integrated circuit manufacturing, HuaHong Group is fully confident that it can leverage its independently controllable integrated circuit manufacturing technologies and Wuxi’s robust industrial infrastructure to build a strong Wuxi base, thereby continuing to play a leading role in driving the leapfrog development of China’s integrated circuit industry. In addition, HuaHong Group is committed to promoting the construction of a smart city in Wuxi, fostering multi-level strategic cooperation between the two sides, and boosting both Wuxi’s economic and social development and HuaHong Group’s competitive edge.

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