Chinese tech giants Hygon and Sugon call off merger, say they're still besties

Chinese tech giants Hygon and Sugon have called off their planned merger.

Hygon is a chipmaker that produces GPUs and processors. Sugon makes servers, supercomputers and interconnects. To understand the potential impact of the transaction, imagine a merger between AMD and Supermicro to create an entity that makes most of the technologies needed to build a supercomputer and has the manufacturing muscle to deliver the machines.

Combining the companies looked good on paper, but getting the deal done meant pushing a lot of paper because Sugon is Hygon’s largest shareholder and the transaction involved other entities. According to statements issued by Hygon, in the time since the May announcement of the merger, market conditions shifted and so did the stance of some stakeholders.

Attempts to reconcile differing opinions failed, and all concerned decided to call off the merger.

“The decision to terminate this transaction was made after careful study ...