Huahong Grace Semiconductor plans to acquire 97.4988% of Huali Microelectronics' equity, and the merger and acquisition application will be reviewed by the Shanghai Stock Exchange on June 18.
Huahong Grace Semiconductor Co., Ltd. issued an announcement disclosing the latest progress of a major asset acquisition. The company plans to acquire 97.4988% equity of Huahong Microelectronics Co., Ltd. held by Shanghai Huahong (Group) Co., Ltd., Shanghai Integrated Circuit Industry Investment Fund Co., Ltd., National Integrated Circuit Industry Investment Fund Phase II Co., Ltd., and Shanghai Guotou Pioneer Integrated Circuit Private Equity Investment Fund Partnership (Limited Partnership) through the issuance of shares, and simultaneously raise supporting funds.
According to an announcement disclosed by Huahong Grace on June 12, this transaction is a share issuance to acquire assets and a related-party transaction. After the transaction is completed, Huahong Microelectronics will become a wholly-owned subsidiary of Huahong Grace. Previously, the company held a board meeting on December 31, 2025, and approved the relevant proposals for this transaction. The initial plan included the issuance of shares and cash payment, but it was later adjusted to a pure share issuance payment, with the issuance price set at RMB 43.34 per share.
On June 11, 2026, Huahong Grace received the "Letter of Implementation of Review Center Opinions" issued by the Shanghai Stock Exchange, and subsequently revised and submitted the relevant materials. According to the schedule of the 9th review meeting in 2026 published on the Shanghai Stock Exchange's official website, the Merger and Acquisition Review Committee is scheduled to hold a meeting on June 18 to specifically review this transaction.
The announcement also clarified that the transaction is subject to review by the Shanghai Stock Exchange Mergers and Acquisitions Review Committee and registration approval from the China Securities Regulatory Commission. The approval results and implementation time are uncertain.
Public information shows that Huahong Grace Semiconductor has been deeply involved in the semiconductor manufacturing field for over 15 years, operating China's first fully automated 12-inch integrated circuit foundry production line, focusing on logic processes and covering nodes such as 65/55nm and 40nm. Huahong Grace Semiconductor, on the other hand, focuses on a diversified and specialized process platform, with investments in embedded memory, power devices, and analog power management. This acquisition will resolve the issue of competition between the two companies on certain process platforms and integrate their production capacity and technological resources.