Hua Hong Grace Semiconductor announced plans to build a Phase III fab in Wuxi, Jiangsu Province. The investment is expected to total $6.95 billion and will involve a capital increase and a revision of the equity ownership structure.
China’s leading foundry operator Hua Hong Grace Semiconductor has announced plans to build a Phase III fab in Wuxi, Jiangsu Province, with production lines for specialty processes on 12-inch wafers and monthly capacity of approximately 55,000 wafers. The project is intended to expand production capacity over the long term and strengthen the company’s competitiveness in the market.
The project company, Wuxi Hua Hong Grace Phase III Semiconductor, was established on 30 October 2025, but its substantive business activities remained limited as of September 2026. Hua Hong Grace Semiconductor and Shanghai Hua Hong Grace Semiconductor Manufacturing will now carry out a capital increase jointly with 3 external investors. Registered capital will be increased to $4.17 billion after the capital increase. Hua Hong Grace Semiconductor will hold a 25% equity interest, Shanghai Hua Hong Grace Semiconductor Manufacturing will hold 26%, and the group as a whole will hold 51%.
The planned investment in the Wuxi Phase III project is $6.95 billion, funded through capital contributions and bank borrowings. Wuxi Hua Hong Grace Phase III Semiconductor will remain a consolidated subsidiary after the capital increase. The parties will use their funding and management resources to accelerate construction of the project and expansion of production capacity, with the aim of improving performance in the future.