China IC Fund II to Participate as Investor for Hua Hong Semiconductor by Investing CNY 3 Billion

Hua Hong Semiconductor announced on Wednesday that China IC Fund II would participate as a strategic investor in a proposed RMB share issuance by subscribing for RMB shares worth 3 billion yuan ($414.15 million), subject to allotment.

According to the company, China's second-largest chip foundry has formed an independent board committee to review and advise its independent shareholders on whether the terms of the China IC Fund subscription are fair and reasonable.

The company stated that the RMB share offering will allow it to increase its production capacity and R&D capability, among other things.

The Shanghai-based chipmaker gained approval from the Shanghai Stock Exchange in May for a $2.6 billion public share offering, which would be the year's largest mainland listing to date.