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News  ›  Benzinga

China's Chip Consolidation Accelerates With SMIC, Hua Hong Buyouts

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China's Chip Consolidation Accelerates With SMIC, Hua Hong Buyouts

China's leading chipmakers SMIC and Hua Hong announced buyouts of government minority stakes in key subsidiaries, signaling accelerated consolidation in the semiconductor industry. SMIC will acquire 49% of SMIC Beijing for $5.81 billion, while Hua Hong will acquire 38.4% of Shanghai Huali Microelectronics for 8.3 billion yuan. This reflects Beijing's strategy of government-backed expansion followed by consolidation, though the sector has faced notable failures like Wuhan Hongxin's bankruptcy.

Insights
TSM   neutral

TSM is mentioned as a global competitor benchmark for Chinese chipmakers' consolidation efforts. No direct impact on TSM is indicated, though increased Chinese consolidation may intensify competition.