After the completion of this transaction, Hualiwei will become a subsidiary of Huahong Company’s merger. Huahong Company’s major financial indicators such as total assets, net assets, income, and net profit are expected to further increase, which is conducive to enhancing the company’s ability to continue operating.
Before this transaction, as the world’s leading special process wafer foundry enterprise and the most comprehensive wafer foundry enterprise in the industry with the most comprehensive coverage of characteristic process platforms, Huahong Company is mainly engaged in customizable semiconductor wafer foundry services based on characteristic process platforms with multiple process nodes and different technologies. Based on the expansion of characteristic process technologies, the company has deepened its special process platforms such as embedded and independent non-volatile memory, power devices, simulation and power management, logic and radio frequency.
In the first half of 2025, Huahong Company achieved operating income of 8.018 billion yuan, a year-on-year increase of 19.09%; and achieved net profit attributable to the parent company’s owners of 74.3154 million yuan, a year-on-year decrease of 71.95%.
Hualiwei is mainly engaged in 12-inch integrated circuit wafer foundry services, providing complete technical solutions for terminal applications such as communications and consumer electronics.
Huahong Company stated in the announcement that through this transaction, the company will further increase the 12-inch wafer foundry production capacity. The advantageous process platforms of both parties can achieve deep complementarity, jointly build wafer foundry and supporting services covering a wider range of application scenarios and a fuller technical specifications, which can provide customers with more diverse technical solutions and enrich the product system. At the same time, through the integration of R&D resources and sharing of core technologies, the two parties are expected to produce synergistic effects in process optimization, yield improvement, device structure innovation, etc., accelerate technological innovation and iteration, and jointly enhance technical barriers and core competitiveness in the fields of logical processes and characteristic processes.
In addition, Huahong Company will achieve integrated management through integrated management and control, achieve deep integration in internal management, process platforms, customized design, supply chain, etc., and achieve scale effects by reducing costs and increasing efficiency, and enhance the company’s market share and profitability.
