Sugon, Hygon merger is latest sign of consolidation in China’s computing sector
Both companies’ Shanghai-listed shares would be suspended for up to 10 trading days starting Monday, according to stock filings
Chinese supercomputer maker Sugon and chip designer Hygon Information Technology have announced a merger plan, marking the latest consolidation in the country’s high-performance computing sector amid US export restrictions.
Under the proposed deal, Hygon will absorb Sugon shares through a stock swap agreement and issue new mainland China-listed shares to Sugon’s shareholders, according to their stock exchange filings on Sunday.
To avoid fluctuations in share prices from the deal, both companies’ Shanghai-listed shares would be suspended for up to 10 trading days starting Monday, according to the filings, which did not disclose the amount of money involved.
The merger marks a major move to consolidate two of the leading players in China’s computing supply chain.
Hygon, which was founded in 2014, specialises in the design of central processing units (CPUs) and so-called deep computing units, an accelerator card specially designed for artificial intelligence (AI) and deep learning.
The company is seen as an important player in the country’s push for semiconductor self-sufficiency, with analysts suggesting its products could become an alternative for AI chips from Nvidia, which have come under tighter export restrictions from the US.