The country’s third-largest wafer foundry, Advanced Semiconductor Manufacturing, plans to go public in Hong Kong, betting 35.5 billion yuan on 28-nanometer technology!

The country’s third-largest wafer foundry, Advanced Semiconductor Manufacturing, plans to go public in Hong Kong, betting 35.5 billion yuan on 28-nanometer technology!

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CR Micro submits a listing application to the Hong Kong Stock Exchange, aiming to leverage the international capital market to support a large-scale expansion plan with a total investment of 35.5 billion RMB and to achieve a key leap to the 28nm process.

CR Micro officially submitted the Hong Kong listing application this Tuesday, with CICC as the exclusive sponsor. The company plans to achieve dual listings in both A-share and H-share markets. Headquartered in Hefei, CR Micro is the third largest foundry in China, after SMIC and Hua Hong Semiconductor.

The application comes just weeks after CR Micro completed the full process development of its 28nm logic platform. This marks the company’s leap from its previous main process range of 55nm to 150nm to higher value nodes, opening the door to emerging markets such as AI, mobile phones, smart vehicles, and OLED display panels.

This trip to Hong Kong is the latest in a wave of Chinese semiconductor companies flocking to the Hong Kong Stock Exchange, and also reflects the overall trend of accelerated expansion and consolidation in the domestic foundry industry for mature processes.

35.5 Billion Expansion Drives Financing Needs

In January this year, CR Micro officially launched its fourth phase project in Hefei Xinzhan High-Tech Industrial Development Zone, with a total investment of 35.5 billion RMB.

This includes a new 12-inch wafer fab with a designed monthly capacity of 55,000 wafers, covering 40nm and 28nm process nodes. Equipment installation is planned to start in the fourth quarter of this year, followed by volume production, with the goal of reaching full capacity in the second quarter of 2028.

According to its prospectus, CR Micro plans for “dual listings in A- and H-share markets”, with the funds clearly targeted at equipment procurement and R&D investment for the fourth phase project.

The core value of listing in Hong Kong is to open an international capital channel—not to look for US dollars, but to find institutional investors willing to hold Chinese semiconductor assets for the long term.

Continued Semiconductor Financing Heat in Hong Kong Stocks

CR Micro's Hong Kong IPO comes in the midst of a wave of Chinese chip companies seeking funding in Hong Kong.

Since the second half of 2024, the Hong Kong Stock Exchange has seen a boom in domestic chip listings: SMIC moving from STAR Market to H-shares, Hua Hong Semiconductor’s additional share offering, and Horizon Robotics’ IPO.

For CR Micro, listing in both markets helps broaden financing channels, increases coverage by international institutional investors, and provides more sustained funding for large-scale capacity building.

28nm Breakthrough Opens High-Value Markets

CR Micro has long focused on mature processes, with core capacity concentrated in the 55nm to 150nm range, mainly serving fields such as display driver ICs, power management chips, and image sensors.

According to The Next Web, completion of the full-process development of the 28nm logic platform enables the company to enter high-value, rapidly expanding segments like artificial intelligence, mobile phones, intelligent connected vehicles, and OLED display panels.

The 28nm node, among mature processes, is relatively high in technical content and product premium. This breakthrough is synergistic with the planned 40nm and 28nm capacity of the fourth phase project and lays the foundation for CR Micro to optimize its product mix and enhance foundry added value.

China's Mature Process Market Share Accelerating Expansion

The mature process sector where CR Micro deeply cultivates is one of the clearest directions in China's semiconductor strategy. According to the latest research from TrendForce, China’s share of the world’s mature process capacity was 22% in 2021 and is expected to climb to 53% by 2030.

In addition to continued capital investment, leading domestic foundries are accelerating scale expansion through mergers and acquisitions.

According to The Next Web, SMIC completed the acquisition of the remaining 49% equity of its mature process subsidiary SMIC Northern for $5.7 billion; Hua Hong Semiconductor acquired Shanghai Huali Microelectronics for $1.2 billion, adding a monthly capacity of 38,000 12-inch wafers, covering nodes from 65nm to 40nm.

CR Micro’s Hong Kong listing this time is in sync with this wave of industry consolidation and integration, jointly depicting the rapid scaling scenario of China’s mature process industry driven by capital.

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