The aborted merger dashes industry expectations for a major domestic ecosystem covering advanced processors and high-performance servers.

Chinese supercomputer maker Sugon and chip designer Hygon Information Technology have called off a planned mega-merger that had been under discussion for months, in a surprise move that could complicate the country’s tech self-sufficiency efforts in the semiconductor and high-performance computing sectors. The two Shanghai-listed companies late on Tuesday said they cancelled merger talks because “the market environment has changed significantly since the initial planning stages of this…

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