Huahong Semiconductor Plans Wuxi Phase III Project With RMB 5.56 Billion In Surplus Funds

Huahong Semiconductor (01347) said it plans to use RMB 3.03 billion of excess proceeds from its initial public offering and about RMB 2.53 billion of remaining funds from the completion of its 8-inch fab upgrade and specialty process technology R&D projects, for a total of about RMB 5.56 billion, to invest in a new project, Huahong Semiconductor Wuxi Phase III. The group also plans to use RMB 150 million of remaining funds from the completed Huahong Manufacturing (Wuxi) project to permanently supplement working capital, according to ETNet. Huahong Semiconductor said the Wuxi Phase III project has a total investment of $6.95 billion and will use about RMB 5.56 billion as project capital, with the rest to be financed through bank loans. The project will build a clean room and power system at the existing Wuxi base, add process, metrology and support equipment, and construct a 12-inch specialty process production line with monthly capacity of 55,000 wafers. It is expected to complete line construction and begin production by December next year. The company also said it will reduce the total investment in the 8-inch fab upgrade project and close the project after assessing recent operating conditions and market expansion progress.