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Sugon will be acquired by its subsidiary hygon information technology after its suppliers can no longer source us chips due to sanctions. The merger marks a major step in consolidating two core players in china’s computing supply chain. Wataru suzuki / nikkei asia

The merger was announced in may Hygon information technology and dawning information industry co Embedded embedded processors sugon and hygon information industry co., ltd

They will continue to focus on underlying chips and computing systems.

China's biggest planned consolidation in domestic computing power has collapsed, jolting the sector

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