Recently, the semiconductor industry has witnessed continuous developments, with particular vibrancy in the wafer foundry sector.

Crystal-Omega Integrated Circuit Co., Ltd. has kicked off the construction of its Phase IV project with a total investment of RMB 35.5 billion, scheduled to reach full production in the second quarter of 2028. Meanwhile, Huahong Semiconductor Limited has officially announced a blockbuster acquisition worth RMB 8.2 billion to fully acquire Huali Microelectronics Corporation and boost production capacity. Additionally, Semiconductor Manufacturing International Corporation (SMIC) has significantly increased the proportion of its H-shares held by the National Integrated Circuit Industry Investment Fund through equity swap, and SMIC North will become its wholly-owned subsidiary. Driven by these manufacturers' efforts, domestic wafer foundry is expected to achieve further progress in technology upgrading, capacity expansion and industrial chain improvement.

Phase IV Project of Crystal-Omega Integrated with Total Investment of RMB 35.5 Billion Commences Construction

According to the official WeChat account of Crystal-Omega Integrated on January 4, 2026, the company has officially launched the construction of its Phase IV project with a total investment of RMB 35.5 billion. The new plant will be located in Xinzhan High-tech Zone, Hefei, Anhui Province, continuing to leverage the agglomeration effect of the park and making further contributions to enhancing the technological strength and supply chain independence of China's semiconductor industry.

It is reported that the Phase IV project of Crystal-Omega Integrated will build a 12-inch wafer foundry production line with a monthly capacity of 55,000 wafers, focusing on 40nm and 28nm processes for CIS, OLED and logic chips. The products can be widely applied in fields such as OLED display panels, AI-enabled mobile phones, AI PCs, intelligent vehicles and artificial intelligence.

Especially in the field of logic process technology, Crystal-Omega Integrated has jointly completed the development of multiple 28nm process platforms with its customers. In the future, it will accelerate the pace of domestic substitution to meet the demands of the local market.

Crystal-Omega Integrated stated that over the past decade, the company has achieved steady growth and forged ahead courageously: expanding from the mass production of one fab to the full-capacity operation of three fabs; advancing its process technologies from 150nm to 28nm; and rising from the top position in the global LCD driver chip foundry market share to the first place in the shipment volume of security CIS chips.

Standing at the new starting point of improving the self-sufficiency rate of domestic chips, Crystal-Omega Integrated is accelerating the progress of its Phase IV project. Equipment installation will start in the fourth quarter of 2026 to realize production, and the project will reach full production in the second quarter of 2028. This is aimed at satisfying the market demand for high-performance and high-quality wafer foundry services, and building a stable and secure integrated circuit industrial chain.

Huahong Officially Announces RMB 8.2 Billion Acquisition to Further Boost Wafer Foundry Capacity

At the end of December 2025, Huahong Semiconductor issued an announcement stating that it plans to issue a total of 191 million shares at a price of RMB 43.34 per share to four transaction counterparties including Huahong Group, Shanghai Integrated Circuit Industry Investment Fund, Phase II of the National Integrated Circuit Industry Investment Fund and SDIC Pioneer Capital, to acquire their combined 97.4988% equity stake in Huali Microelectronics. The transaction price (excluding the amount of supporting fund-raising) amounts to RMB 8.268 billion.

Meanwhile, Huahong Semiconductor intends to issue shares to no more than 35 specific objects (with a lock-up period of 6 months), raising no more than RMB 7.556 billion. The proceeds will be used for Huali Microelectronics' technology upgrading and renovation projects, R&D and industrialization projects of its characteristic processes, as well as supplementing working capital, repaying debts and paying intermediary fees.

Prior to this transaction, Huahong Semiconductor held a 2.5% equity stake in Huali Microelectronics. Upon completion of the transaction, Huahong Semiconductor will gain full control of Huali Microelectronics.

According to data, Huali Microelectronics is mainly engaged in integrated circuit wafer foundry business, boasting independent non-volatile memory, embedded non-volatile memory, logic and radio frequency, high-voltage and other process platforms, covering 65/55nm and 40nm process nodes, and its products are applied in terminal product markets such as communications and consumer electronics.

Huahong Semiconductor indicated that after the completion of this restructuring, Huali Microelectronics' 65/55nm and 40nm logic processes and characteristic process technologies will be directly injected into the listed company. The listed company will add a monthly capacity of 38,000 wafers for 65/55nm and 40nm processes, thereby enhancing its market position.

Equity Swap for SMIC North Stake: National Integrated Circuit Fund’s H-share Holding Ratio in SMIC Surges

In addition to Crystal-Omega Integrated and Huahong Semiconductor, another major wafer foundry player, SMIC, has also made significant progress.

According to the disclosure information of the Hong Kong Exchanges and Clearing Limited on January 2, 2026, SMIC issued 357 million new shares to the National Integrated Circuit Industry Investment Fund as part of the consideration for acquiring a 49% equity stake in SMIC North. Upon completion of the transaction, the number of H-shares held by the National Integrated Circuit Industry Investment Fund in SMIC will increase from 383 million shares to 740 million shares, with the shareholding ratio rising from 4.79% to 9.25%.

This transaction is an important part of SMIC's overall asset restructuring plan. On December 29, 2025, SMIC issued an announcement stating that it plans to issue a total of 547 million shares to five shareholders of SMIC North including the National Integrated Circuit Industry Investment Fund, to acquire a 49% equity stake in SMIC North. After the transaction is completed, SMIC North will become a wholly-owned subsidiary of SMIC.

Data shows that SMIC North was established in 2013, specializing in 12-inch integrated circuit wafer foundry business, and providing manufacturing services covering various process platforms such as logic, radio frequency, high-voltage and embedded non-volatile memory. At present, SMIC North owns an advanced 12-inch wafer production line in Yizhuang, Beijing, serving as an important production base of SMIC in northern China.

SMIC stated that this transaction will not change the scope of the company's main business, but will significantly enhance the company's economies of scale and operational efficiency in the 12-inch wafer foundry sector, providing stronger support for responding to the restructuring of the global semiconductor industrial chain and the demand for domestic chip independence.