Former top manager of Intel headed the second largest Chinese chip manufacturer

Hua Hong Semiconductor, China’s second-largest chip maker, has made a strategic leadership reshuffle with the appointment of logic chip technology veteran Bai Peng as president on January 1, 2025. This was reported by the Nikkei publication. The company’s move is explained by its desire to diversify production, as well as the need to develop more advanced technological processes.

Image source: HLMC

Bai Peng worked at Intel for more than 30 years, where he led logic chip projects from research to mass production. Hua Hong Semiconductor expects his experience to help the company move into more advanced semiconductor manufacturing technologies. Hua Hong is one of the few enterprises in China capable of producing chips using the 40nm process technology, along with SMIC.

Although the 40nm process is a highly sophisticated technology, it is not suitable for manufacturing advanced processors for AI, high-performance computing (HPC), and client computing workloads. Bai Peng is tasked with improving Hua Hong’s production processes. The Nikkei report notes that his experience fits with the company’s strategic focus on developing more advanced manufacturing nodes needed for AI and other high-performance applications.

Hua Hong has historically specialized in the production of power semiconductors, analog chips and embedded storage devices. Most of its products are manufactured using 100nm process technology and above. However, after peaking in 2022, Hua Hong’s financial performance began to decline due to falling prices for legacy chips, which proved particularly vulnerable to market fluctuations. Lower product costs have prompted the company to diversify its production and enter the logic chip market, which is currently dominated by a few Chinese companies, including SMIC.

Image source: Nikkei Asia / Shunsuke Tabeta

To expand its manufacturing capabilities, Hua Hong acquired the former GlobalFoundries plant in Chengdu, China in 2023 and began producing chips in 2024. In addition, the company’s new plant in Wuxi now produces chips using 40nm technology and above. These moves are aimed at strengthening Hua Hong’s position as a key player in both traditional and advanced chip markets.

Hua Hong had about 2% of the global chip manufacturing market in the third quarter of 2023, according to TrendForce. Despite the modest share, the company clearly intends to increase it. In particular, STMicroelectronics, a leading European chip manufacturer, announced plans to outsource part of its production to Hua Hong, highlighting the growing recognition of its capabilities.

Parent company Huahong Group has also recently undergone management changes. Tang Junjun, who previously served as president, has been promoted to chairman. His achievements include strengthening the cooperation between Huahong Group and NEC. In addition, Qin Jian, who headed Shanghai Alliance Investment, a major shareholder of Hua Hong, became chairman of the parent group in December 2023.

Recent management changes have sparked speculation about a potential collaboration between Hua Hong and SMIC, China’s largest and most advanced semiconductor manufacturer. Such a partnership could support China’s efforts to create a self-sufficient semiconductor ecosystem, aimed at reducing dependence on foreign supply chains.