"The decision to terminate this transaction was made after careful study by the company and full communication and friendly consultation with the counterparty,"
"give full play to the advantages of Sugon in cutting-edge technologies such as super-node computing power, scientific large model development platform, and cluster systems."
"may intensify competition in the domestic high-end chip market, but its accompanying sales share will push up procurement costs, and market penetration still has challenges."
Hygon and Sugon called off a planned merger after stakeholders shifted positions and reconciliation attempts failed. Hygon makes GPUs and processors while Sugon builds servers, supercomputers and interconnects. The combined company would have vertically integrated major technologies and manufacturing capacity for supercomputers, but ownership structure and paperwork complications—including Sugon being Hygon's largest shareholder—added complexity. Both firms plan to continue and intensify collaboration, with Hygon aiming to leverage Sugon’s strengths in super-node compute, scientific large-model platforms, and cluster systems. Both companies dismissed claims that the termination will damage China’s computing industry, and Hygon noted competitive pressures from Nvidia’s H200.
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