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Hua Hong Semiconductor is set to acquire a 97.5% stake in Shanghai Huali Microelectronics for approximately RMB 8.27 billion. This deal aims to streamline China's foundry sector amid geopolitical pressures and enhance Hua Hong's manufacturing capabilities, including additional capacity of 38,000 wafers per month. With this acquisition, Hua Hong is expected to solidify its position as China's second-largest contract chipmaker and improve its competitiveness in mature-node technologies critical to various markets.