Wuxi puts 6bn yuan behind Huahong chip expansion
A new Wuxi investment platform is set to take a 20% stake in Huahong Grace Semiconductor Phase III, a specialty foundry project targeting 55,000 wafers a month.
Wuxi has launched a 6bn yuan investment platform to support an expansion of Huahong’s chip foundry operations, according to ChinaTechNews.1 The move is presented as part of the city’s push for domestic semiconductor capacity amid pressure on global supply chains.
ChinaTechNews reports that Wuxi Xinhong Guoxin Phase II Investment Co. will inject US$834m for a 20% equity stake in Wuxi Huahong Grace Semiconductor Phase III.1 The platform is backed by state-owned entities including Guonix Industrial Investment Group and the Wuxi Industry Development Group.
The proposed Phase III facility is a 12-inch specialty-process wafer foundry with projected monthly capacity of about 55,000 wafers, the report says.1 Completion and production are scheduled for December 2027, while the wider project carries a stated investment of US$6.95bn.
The project follows an earlier 5.8bn yuan municipal injection for Huahong’s Phase II project in 2023.1 ChinaTechNews also links the expansion to demand for specialty semiconductors and reports that Huahong’s embedded non-volatile memory revenue rose 41.8% year on year in the second quarter of 2026. Those figures and the construction timetable come from the report, rather than an independently audited project filing supplied here.
Our opinion
More foundry capacity is strategically important, but a big investment headline is not the same as working output. The milestone to watch is not the promised wafer count; it is whether the facility reaches production on schedule and wins enough real customers to keep those lines busy.