Chipmaker Hua Hong Plans $4 Billion JV to Boost Production

Chinese contract chipmaker Hua Hong Semiconductor Ltd. plans to launch a $4 billion joint venture to boost much-need production capacity, with partners including the scandal-plagued state-backed semiconductor investor the “Big Fund.”

Hong Kong-listed Hua Hong, the second-largest chipmaker in China by revenue, has been struggling to meet demand despite already expanding its operation, with its fabs running at above designed capacity — maximum volume it could handle based on systems design — according to its financial reports. The JV will run a new production line that will extend the firm’s production capacity of 12-inch silicon wafers, it said in a Wednesday filing.