Hua Hong Semiconductor, China’s second-largest chip foundry, has appointed Bai Peng, a veteran of Intel, as its new president. This move is part of a management overhaul, signalling a strategic shift amid challenges facing the Chinese semiconductor industry.
The Shanghai-based company, known for its expertise in mature node technology, announced Bai’s appointment in a stock filing on Thursday. The 62-year-old industry expert will serve a three-year term, succeeding Tang Junjun, who will continue as chairman and executive director.
A seasoned leader in the semiconductor industry
Bai Peng brings over 30 years of experience in semiconductor manufacturing. He has held executive roles in leading global firms, including Intel, where he served as global vice president. His academic credentials are equally impressive. He studied at Peking University, earned a bachelor’s degree in physics from the University of Bucharest in 1985, and later completed a doctorate in physics at Rensselaer Polytechnic Institute in New York.
Most recently, Bai served as chief executive of Rong Semiconductor (Ningbo) Co. The company produces image sensors, power management chips, and display drivers using mature node technology ranging from 28 to 180 nanometers. During his tenure at Intel, Bai held key positions such as process integration engineer, yield engineering director, R&D director, and global vice president.
Strategic timing for Hua Hong
Bai’s appointment coincides with the recent launch of Hua Hong’s new manufacturing facility in Wuxi, Jiangsu province, near Shanghai. This move is part of the company’s ongoing efforts to expand production capacity and strengthen its position in the semiconductor market.
The leadership change follows the appointment of Qin Jian as chairman of Hua Hong Group, the state-owned parent company of Hua Hong Semiconductor. Qin replaced Zhang Suxin, who had been chairman since 2016. These reshuffles come as China’s semiconductor industry faces increasing pressure from the United States. A recent US trade investigation into China’s production of legacy semiconductors, a key area of focus for Hua Hong, has added to these challenges.
Performance and market presence
According to Taiwanese IC research firm TrendForce, Hua Hong Semiconductor ranked as the sixth-largest foundry globally in the third quarter of 2024. The company held a market share of 2.2 per cent during the quarter, down from 2.6 per cent in the same period the previous year. Despite the dip, Hua Hong continues to play a vital role in meeting the demands of China’s domestic chip design companies.
In the third quarter of 2024, the company generated 82 per cent of its total revenue of US$526.3 million from mainland China, with just US$47.6 million coming from the United States. This heavy reliance on the domestic market underscores the importance of Hua Hong’s strategic initiatives to bolster its competitiveness amidst global trade tensions.
The appointment of an industry veteran like Bai Peng reflects Hua Hong’s ambition to navigate the challenging landscape and reinforce its leadership in the mature node semiconductor space. With the new Wuxi facility and a revamped leadership team, the company is poised to address the growing demands of both local and international markets.
