Wuhan Hongxin Semiconductor Manufacturing (HSMC), an $18.5 billion company that aimed to become one of China’s leading high-tech chipmakers, started dismissing employees as hopes for business resumption faded, reported Caixin.
Wuhan Hongxin sent notices to all of its workers Friday, company sources told Caixin. The move came more than one year after the project ground to a halt.
The company made clear that “there is no plan for production resumption” and told workers to submit their resignation applications before Feb. 28, one employee said.
“I didn’t expect Wuhan Hongxin to fail so quickly as there have been speculation that companies such as Xiaomi Corp. or Huawei Technologies Co. might take over,” one employee said.