China's Chip Giants Spend Billions in Consolidation Rush

China's two largest chipmakers are making multi-billion dollar acquisitions. This signals a major consolidation in the country's critical semiconductor industry. Hua Hong Semiconductor, China's second-biggest contract chipmaker, announced the purchase of a sister factory in Shanghai on Wednesday. The deal is worth 8.27 billion yuan (US$1.2 billion). This move comes just days after the market leader, Semiconductor Manufacturing International Corp (SMIC), said it would take full control of a subsidiary. That transaction is valued at 40.6 billion yuan. The multi-billion yuan deals highlight a strategic shift. China's chip champions are merging resources. This activity is driven by Beijing's national push for technological self-sufficiency, aiming to reduce foreign reliance in a key sector.