A highly significant China tech industry merger looks set to go ahead, reports the South China Morning Post (SCMP). The Hong Kong-based organ says that the merger plan between chip designer Hygon Information Technology and supercomputer maker Sugon marks “a major move to consolidate two of the leading players in China’s computing supply chain.” We may be seeing the forming of a highly impactful vertically integrated supercomputing giant that has blossomed in the shadow of U.S. sanctions.
The proposed deal involves Hygon absorbing Sugon shares in a stock-swap agreement. Should the process complete successfully, with both companies’ shares being taken off the open market for up to 10 trading days, the newly consolidated entity will appear on the Shanghai stock exchange.
