Government News
Hygon and Dawning combine to boost China's chip-to-server ecosystem 2025-05-27
Shanghai-listed Hygon Information Technology and Dawning Information Industry Company announced a strategic merger valued at over 400 billion yuan (US$55.6 billion) on Monday. The consolidation is aimed at strengthening China's in-house advanced computing ecosystem, from chips and software to servers.
The move is expected to address surging domestic demand for artificial intelligence capabilities and bolster China's drive for technological independence, reducing reliance on US technologies. This alignment is particularly pertinent given the current uncertain geopolitical environment, according to industry insiders.
Hygon, a developer of AI chips, is listed on Shanghai's STAR Market with a market value of 316 billion yuan. Dawning, a computer server manufacturer, is listed on Shanghai's mainboard and is valued at 90 billion yuan. Both companies suspended trading since Monday in anticipation of the merger announcement.
Both sides expect a technology synergy effect, bringing obvious and ecological advantages. Dawning has profound accumulation in high-end computing, storage, cloud computing and other fields, while Hygon focuses on the design of core chips such as CPU and DCU with domestic architecture.
The integration will optimize the industrial layout from chips to software and systems, bringing together high-quality resources in the upstream and downstream of the information industry chain. It will further promote the large-scale application of domestically-made chips in key industries such as government affairs, finance, communications and energy.
Source: Shanghai Daily
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