On September 26, 2014, Tongfang Guoxin Electronics Co. Ltd (“Tongfang Guoxin”) held a board meeting and approved Tongfang Guoxin’s subscription for, through its wholly-owned subsidiary Tongxin Investment (Hong Kong) Co., Limited, such number of shares of Hua Hong Semiconductor Limited (“Hua Hong”) which may be purchased for up to US$ 15 million at the offering price.

Hua Hong is a global, leading pure-play 200mm foundry, which primarily focuses on manufacturing semiconductors on 200mm wafers for specialty applications. Hua Hong’s manufacturing expertise comes from many years of research and development of advanced and differentiated technologies for 200mm wafer manufacturing, in particular eNVM and power discretes. The Group’s portfolio also includes several other advanced process technologies such as RFCMOS, analog and mixed signal, CMOS image sensors, PMIC and MEMS.

Tongfang Guoxin, a public company listed on Shenzhen Stock Exchange (Stock Code: SZ002049), mainly engages in the production and sales of integrated circuit chips, including the smart card chip products and special integrated circuit products.

Hua Hong Grace, a wholly-owned subsidiary of Hua Hong, is Tongfang Guoxin’s wholly-owned subsidiary Beijing Tongfang Microelectronics Co., Ltd (“TMC”)'s important long-term supplier. TMC has also been one of Hua Hong Grace’s top 3 customers.  The investment by Tongfang Guoxin is intended to strengthen the two company’s strategic partnership. 

Hua Hong is expected to list on the Stock Exchange of Hong Kong Limited. Hua Hong has submitted its listing application and passed the listing hearing of the Stock Exchange of Hong Kong Limited on September 18, 2014.  According to the relevant cornerstone investment agreement, Tongfang Guoxin will not participate the pricing process. The offering price is to be fixed following, and on the basis of Hua Hong’s global offering. 

Kejie team was led by partner He Jie and included Li Xin and Gao Wei.