Hua Hong Semiconductor Limited

1347
Failed

Company Overview

Huahong Semiconductor Co., Ltd. (“Huahong Semiconductor” or the “Company”, stock code: 1347.HK) is the world's leading specialty process pure wafer foundry, focusing on differentiated process platforms such as embedded non-volatile memories, power devices, analog and power management, and logic and RF. Its excellent quality management system also meets the strict requirements of automotive electronic chip production. Huahong Semiconductor is a member of the Huahong Group, which is an enterprise group whose main business is integrated circuit manufacturing and has advanced process technology for 8+12 inch production lines. Huahong Semiconductor has three 8-inch (200mm) wafers (Huahong Plant 1, Plant 2 and 3) in Jinqiao and Zhangjiang, Shanghai, with a monthly production capacity of about 180,000 wafers; at the same time, it has a 12-inch (300mm) fab (Huahong Factory 7) in the Wuxi High-tech Industrial Development Zone, with a monthly production capacity of 40,000 wafers, supporting applications in emerging fields such as 5G and the Internet of Things. Huahong Factory 7 was officially completed in 2019 and has entered the production and operation period. It has become the leading 12-inch specialty process production line in mainland China and the first 12-inch power device OEM production line in mainland China. Huahong Semiconductor provides a variety of customizable process options for 1.0 micron to 65 nm technology nodes. The company's embedded non-volatile memory technology has a high level of safety, reliability, cost efficiency and technical precision, making Huahong Semiconductor one of the preferred foundry companies for various rapidly developing embedded non-volatile memory applications such as smart cards and microcontrollers. In terms of power device technology, the company also has strong capabilities and rich experience in mass production, and has a fab that specializes in manufacturing power device products. Through flexible and customizable manufacturing platforms, the company can meet the specific needs of various customers. Huahong Semiconductor is a technology and manufacturing partner trusted by customers. It manufactures chips with its design specifications for diverse customers, including integrated device manufacturers, systems, and factory-less semiconductor companies. Considering the performance, cost and manufacturing yield of the process, the company also provides design support services to optimize complex designs. At present, the chips produced by the company are widely used in various products in different markets (including consumer electronics, communications, computers, industry and automobiles).

Country
HK
Market Cap
$4.16B
Last Fiscal Year
2023
Final Shariah Status
Failed
Compliance Analysis Overview

Shariah Compliance Benchmarks:

  • Business Compliance: Non-Shariah compliant revenue must be less than 5% of total revenue
  • Liabilities Compliance: Interest-bearing debt must be less than 33% of market capitalization
Business Compliance
2.05% passed
5% Threshold
2.1%
Liabilities Compliance
50.51% failed
33% Threshold
50.5%
Final Shariah Status
Failed

This stock does not meet all Shariah compliance criteria according to AAOIFI standards.

Stock Information
Name Hua Hong Semiconductor Limited
Ticker 1347
Main Business Semiconductors
Type Common Stock
Industry Semiconductors
Country HK
Market Cap $4.16 B

Shariah Analysis Breakdown

Business compliance Breakdown
Revenue Segment Value ($M) Non-Compliant ($M) Reason
Sales of semiconductor products and total revenue from customer contracts $1,260.0 $0.0 -
Interest income $26.9 $26.9 -
Total $1,286.9 $26.9 2.05% (passed)
Liabilities Compliance Breakdown
Liability Item Value ($M) % of Market Cap
bank loans and overdrafts $193,040,000.0 4.64%
long term bank loan $1,910,000,000.0 45.88%
Total Interest-Bearing Debt $2,103,040,000.0 50.51%
Market Capitalization $4,163,282,051.3 100.00%
Compliance Status Threshold: 33% failed