Hygon–Sugon merger retools China's AI backbone with full-stack compute integration

Hygon–Sugon merger retools China's AI backbone with full-stack compute integration

Hygon Information Technology and Dawning Information Industry Co. (Sugon) announced a strategic merger on May 25, 2025, a move widely seen as aligning with Beijing's agenda to consolidate its computing infrastructure and fast-track technological self-reliance. Hygon, valued at roughly CNY316 billion (US$43.95 billion), focuses on domestic CPUs and data processing units (DCUs), with five chip generations in use across finance, telecom, artificial…

Chinese server manufacturer Downing Information Industry (Sugon) and chip design company Hygon Information Technology (Hygon) have announced a strategic merger. Analysts interpreted this as China’s move to become more self-reliant in its chip-to-server ecosystem amid the US’s tightening export controls. The deal, which integrates two key players in China’s high-performance computing (HPC) ecosystem, is considered the largest merger in China’s te…