Huahong's new IC project adds fresh impetus to local industry

An internet of things innovation park in Wuxi National Hi-tech District. [Photo/WeChat account: xinwu_wx]

Huahong Group, a leading Chinese chipmaker, commenced the second phase of its integrated circuit research, development, and manufacturing base in Wuxi National Hi-tech District on June 30.

This new project focuses on automotive-grade chips, aiming to enhance applications in sectors such as new energy vehicles, internet of things, renewable energy, and smart terminals.

Since its establishment in the high-tech district in August 2017, Huahong has developed rapidly. The first phase of the base was put into production just 17 months after it broke ground and currently boasts a monthly capacity of 65,000 12-inch wafers. The company plans to gradually increase its monthly capacity to 94,500 wafers by the end of 2023.

Wuxi National Hi-tech District accommodates nearly 80 percent of IC enterprises in Wuxi and accounts for 70 percent of the industry's total output. It has developed a complete industrial chain, covering multiple sectors like chip design, wafer manufacturing, packaging and testing, and equipment materials.

In 2022, the IC industry in the high-tech district was worth 135.2 billion yuan ($18.64 billion), trailing only Shanghai's Zhangjiang. The industry continued to grow in the first five months of this year, surpassing 60 billion yuan in value and maintaining a double-digit growth rate.

By the end of 2025, it is projected that the scale of the integrated circuit industry in the high-tech district will exceed 200 billion yuan, with over 500 IC enterprises and eight listed ones.