China’s Chip Ambitions Get a Boost with New Leadership
A Seasoned Veteran Takes the Helm
In a significant move, China’s second-largest chip foundry, Hua Hong Semiconductor, has appointed a former Intel executive as its new president. Bai Peng, a 62-year-old veteran with over 30 years of experience in semiconductor fabrication, will lead the company’s efforts to strengthen its position in the global chip market.
A Wealth of Experience
Bai’s impressive resume includes executive positions at various chipmakers, including Intel, where he served as global vice-president. He holds a bachelor’s degree in physics from the University of Bucharest, Romania, and a doctorate in physics from Rensselaer Polytechnic Institute in New York State.
A New Era for Hua Hong Semiconductor
Bai’s appointment comes at a critical time for Hua Hong Semiconductor, which has just begun operating a new plant in Wuxi, Jiangsu province. The company is also navigating the challenges posed by the US trade investigation into China’s production of legacy semiconductors, a key area of focus for Hua Hong.
A Shift in Leadership
The management reshuffle at Hua Hong Semiconductor is part of a broader trend in the Chinese semiconductor industry. Hua Hong Group, the state-owned parent company, has also appointed a new chairman, Qin Jian, replacing Zhang Suxin, who had served in that role since 2016.
Market Dynamics
Hua Hong Group ranked as the sixth-largest global foundry in the third quarter of 2024, driven by demand from local chip design companies. While its market share declined slightly to 2.2% during that period, the company remains a significant player in the global chip market.
Domestic Focus
Like its rival Semiconductor Manufacturing International Corporation, Hua Hong Semiconductor generates most of its revenue from the domestic market. In the third quarter of 2024, mainland China accounted for 82% of its total revenue, with only $47.6 million generated from US-based customers.
A New Chapter for China’s Chip Industry
As the Chinese semiconductor industry faces new challenges, the appointment of Bai Peng as president of Hua Hong Semiconductor marks a significant step forward. With his wealth of experience and expertise, Bai is well-positioned to lead the company’s efforts to drive growth and innovation in the sector.
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