Hua Hong Semiconductor Limited (SHA: 688347), a prominent Chinese semiconductor manufacturer, announced on Wednesday (Jan.1st) that Bai Peng, former global vice president of Intel, will assume the role of executive director and president effective January 1, 2025. Bai, 62, will be responsible for overseeing the company's operations, daily management, and the implementation of business strategies.

Bai Peng brings over three decades of experience in the semiconductor industry. Prior to joining Hua Hong Semiconductor, Bai served as CEO of Rongxin Semiconductor from September 2022. His long career at Intel includes key roles such as process integration engineer, manager, director of yield engineering, VP of R&D, and global VP. Bai was an instrumental figure in the launch of Intel's 10nm process technology in 2017, which marked a significant milestone for the company, including its first-ever introduction of manufacturing process technology in China.

This appointment comes at a time when Hua Hong Semiconductor is undergoing significant leadership changes. Tang Junjun, the company's current president and executive director, will step down from the presidency and assume the role of chairman of the board and chairman of the nominating committee effective December 31, 2024. In his new capacity, Tang will focus on his strategic responsibilities as chairman.

The restructuring is part of a broader effort to enhance the company's position in the semiconductor sector, especially as it continues to expand its technological capabilities and manufacturing capacity.

Financial Outlook and Strategic Developments:

For the first three quarters of 2024, Hua Hong Semiconductor reported revenue of 10.502 billion yuan, a year-on-year decline of 18.92%. Net profits fell by 65.69% to 578 million yuan, while its core profit dropped by 68.26% to 465 million yuan. However, the company showed strong performance in the third quarter, with a 226.62% increase in net profits, reaching 313 million yuan. Looking ahead to the fourth quarter, the company projects revenue between $530 million and $540 million, with a gross margin ranging from 11% to 13%.

In terms of expansion, Hua Hong Semiconductor has made notable strides with the Wuxi Integrated Circuit R&D and Manufacturing Base. The 12-inch wafer production line at the Wuxi site, which entered its production phase in December 2024, represents a critical step forward for the company. This expansion, focused on automotive-grade chips, boosts Hua Hong Semiconductor's production capacity to 83,000 wafers per month.

With Bai Peng's leadership and the company's focus on advanced IC and power devices, Hua Hong Semiconductor is expected to continue its strategy of strengthening its distinctive process technologies, ensuring sustained growth and innovation in the semiconductor industry.