Huarun China for $400 million to build 8 inch chip factory

Chinese chip maker Huarun Comchip technology company (CSMC Technologies Corp.) is seeking funds to new strategic investors, to help build its first 8 inch fab. According to the report, the CSMC in Wuxi will seek HK $3 billion 120 million (US $400 million) to help build the fab.

The company's most advanced wafer fab is a 6 inch factory. The company in two were 5 inches and 6 inches wafer factory, the main production of TV and refrigerators and other low-end products with chips. In 2003, Singapore Chartered Semiconductor became a strategic investor in CSMC, thus gaining 5% of CSMC's shares. As one of China's first generation chip foundry CSMC, listed in Hongkong last year on the setback, when the overall impact of the overall decline in technology stocks.

Other Chinese chip makers are also seeking financial support. This week, China's banking consortium agreed to lend $600 million to Shanghai's SMIC to allow the company to expand its 300-mm wafer production line in Beijing.