Hua Hong Semiconductor Limited (HHUSF)
Fair ValueFundamental
34
Price
$105.40
Market Cap
$257.92B
Part 1 · What the company is worth
Overview
Hua Hong Semiconductor manufactures chips for other companies as a foundry: customers design chips and send Hua Hong the blueprints, and Hua Hong fabricates the silicon wafers in its own factories in Shanghai and Wuxi, China. It specializes in mature and specialty process technologies rather than the most cutting-edge nodes — chips for power management, embedded memory, and analog circuits used in cars, industrial equipment and consumer electronics — where reliability and cost matter more than raw transistor density.
How it makes money
Hua Hong is paid a manufacturing fee per wafer processed, plus charges for mask sets and process development, rather than earning royalties on the chips it makes. Because fabs have high fixed costs from expensive equipment and cleanrooms, profitability depends heavily on capacity utilization — the plants ran at 106.1% utilization in 2025, among the highest in the industry. Revenue grew a fifth in 2025 as demand strengthened for its specialty process platforms, particularly analog and power management chips.
Competitive moat
Scale · NarrowBuilding and qualifying a specialty-process wafer fab requires billions of dollars and years of process-engineering know-how that a new entrant cannot quickly replicate, giving established foundries like Hua Hong an advantage in mature and specialty nodes. The advantage is narrower than in cutting-edge logic manufacturing, where a small number of much larger foundries compete on more advanced technology.
What drives demand
CyclicalDemand tracks the broader semiconductor cycle and the capital-spending plans of the fabless chip companies that are Hua Hong's customers, which can swing between shortage and oversupply within a few quarters. High fixed costs mean that when fab utilization falls, profitability falls faster than revenue, since a large share of costs continue regardless of how many wafers actually run through the plant.
The case for
Buyers argue that Hua Hong's near-full capacity utilization and 20% revenue growth in 2025 show strong demand for its specialty process platforms, and that its position as a leading China-based foundry benefits from the country's push to build domestic semiconductor manufacturing capacity.
The case against
Sellers worry that mature-node foundry capacity is being added quickly across the industry, which could pressure the pricing that supports today's high utilization, and that heavy reliance on China's semiconductor ecosystem exposes the company to geopolitical and export-control risk beyond its control.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
Global specialty foundry selling differentiated RF, embedded non-volatile memory and power platforms to the same automotive and IoT customers.
Analog-focused foundry whose power, mixed-signal and RF process offering overlaps directly with Hua Hong's specialty platforms.
China's largest pure-play foundry, competing for the same domestic fabless customers on mature and specialty nodes for power, analog and embedded-memory chips.
Taiwanese specialty foundry built on 8-inch power management, discrete and display-driver processes, the same 200mm product mix Hua Hong sells.
Taiwanese mature-node foundry serving the same automotive, industrial and consumer chip designers on 8-inch and 28/22nm 12-inch capacity.
Mainland China's other large 12-inch mature-node foundry, bidding for the same domestic display-driver, CIS and power-management wafer orders.
Balance Sheet & Liquidity
Revenue
$21.09B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Net Income
$790M
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Free Cash Flow
$-1.59B
Total Equity
$61.84B
Total Liabilities
$4.20B
Current Ratio
2.02
Interest Coverage
-
Debt/EBITDA
5.57
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$103.27
Current Price
$105.40
Margin of Safety
-2.1%
Fair Value Range
$67.13 - $139.42
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
257.45
ROE
-0.4%
P/B Ratio
3.87
P/FCF
-
Gross Margin
18.9%
ROIC
0.0%
Profitability Radar
Value Creation (Economic Moat)
ROIC
0.0%
WACC
17.3%
ROIC − WACC
-17.3 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (7)
- Price CAGR 29.59%
- Debt/Equity ratio
- Current Ratio
- Debt/EBITDA
- Revenue Growth 5Y 20.8%
- Analyst Consensus 64% Buy
- Earnings Quality (OCF/NI) 16.49
Failed (11)
- ROIC 0.0%
- Gross Margin 18.9%
- P/B Ratio 3.87
- Operating Margin -0.8%
- Positive Free Cash Flow
- Price below Graham Number
- DCF valuation (Unknown)
- ROE 1.5%
- Earnings Surprise avg -41.0%
- Net Margin Trend 2.3% vs 2.6%
- Piotroski F-Score 2/9
Unavailable (9)
- EPS data insufficient
- P/FCF NaN
- Dividend Payout NaN%
- CapEx intensity
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- PEG Ratio (need PE > 0 and growth > 0)
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
No institutional filings reported for this company.
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Bai Peng | President & Executive Chairman | 62 |
| Mr. Yu-Cheng Wang | Executive VP, CFO & Secretary of the Board | 62 |
| Ying Na Huang | Accounting Supervisor | - |
| Ms. Kathy Chien | Deputy Director of the Investor Relations | - |
| Mr. Bill Lin | Executive Vice President | 57 |
| Mr. Guangping Hua | Executive Vice President | 58 |
| Mr. Weiping Zhou | Executive Vice President | 58 |
| Mr. Maohui Ge Larry | Executive Vice President | 60 |
| Mr. Hualun Chen | CTO & Director | 55 |
| Mr. Lei Wang | Senior Vice President | - |
Audit Risk
1
Board Risk
9
Compensation Risk
5
Shareholder Rights Risk
8
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for HHUSF, sourced from Markets Gazette.