Hua Hong Grace Semiconductor Limited (688347.SH) has announced a plan to increase its capital commitment in its Wuxi-based subsidiary, alongside a strategic move to scale up its semiconductor production capabilities.

According to the company's official statement, Hua Hong Grace and its wholly-owned subsidiary, Shanghai Hua Hong Grace Semiconductor Manufacturing Co., Ltd., intend to jointly inject additional funds into Wuxi Hua Hong Grace Phase III Semiconductor Co., Ltd., together with other investors including Wuxi Xihong Guoxin Phase II Investment Co., Ltd. The capital injection is designated to establish a new 12-inch specialty process wafer foundry production line with a planned monthly capacity of approximately 55,000 wafers.

Following the completion of this investment round, the target company's registered capital will reach $4.17 billion. In this structure, Hua Hong Grace will contribute $1.0425 billion, while Shanghai Hua Hong Grace will provide $1.0842 billion.

This investment represents a key initiative for Hua Hong Grace to support long-term growth, expand its semiconductor manufacturing footprint, and strengthen its competitive position in the market. After the capital increase, the target entity will remain a controlled subsidiary of Hua Hong Grace, allowing the company to leverage the financial and resource support of all joint venture partners to accelerate project construction and enhance production capacity.