Hua Hong Seeks Controlling Stake in HLMC in Major China Foundry Consolidation Push

China’s No. 2 foundry, Hua Hong Semiconductor, is reportedly moving to acquire a controlling stake in Shanghai Huali Microelectronics (HLMC) via a combination of share issuance and cash, along with a supporting capital raise, according to ijiwei and Security Times.

The deal, aiming to resolve the industry-competition issue Hua Hong pledged to address at its IPO, would rank among the largest consolidations in China’s semiconductor industry in recent years if completed, as per EETimes China.

Hua Hong Semiconductor announced the plan on August 18, prompting a trading halt expected to last no more than 10 trading days, the reports add.