BEIJING (Reuters) – China’s state-backed chip funding fund has invested 14.56 billion yuan ($1.99 billion) in a reminiscence chip firm referred to as Changxin Xinqiao, information confirmed.
The deal noticed China Built-in Circuit Business Funding Fund, also called the “Massive Fund”, contribute to 33.15% of the full registered capital of Changxin Xinqiao, in accordance with an replace dated Oct. 26 to the corporate’s registration info on the Nationwide Enterprise Credit score Data Publicity System.
In line with firm registration web site Qichacha, Changxin Xinqiao was based in 2021 in Hefei metropolis, within the jap Anhui province.
Its common supervisor is Zhao Lun, who can also be the chairman and common supervisor of Changxin Reminiscence Know-how, which is certainly one of China’s main reminiscence chip firms.
Changxin Xinqiao and the Massive Fund didn’t instantly reply to Reuters’ requests for remark.
The Massive Fund’s newest funding comes after it invested 13 billion yuan into Yangtze Reminiscence Applied sciences (YMTC) earlier this yr, marking certainly one of its largest investments lately.
YMTC, China’s solely participant within the world NAND reminiscence market, has been aggressively increasing manufacturing capability and R&D with the assistance of state subsidies. YMTC was blacklisted by america in 2022 over fears that it might divert U.S. know-how to Huawei Applied sciences Co Ltd
Changxin Xinqiao’s capital elevating from the Massive Fund is a component of a bigger registered capital enlargement that concerned present traders, Changxin Xinan and Hefei Xinyi, rising their capital contribution by 10.4 billion yuan and 14 billion yuan respectively.
Hefei Xinyi is backed by a few funding platforms linked to the state asset regulator in Anhui province, in accordance with entries within the Nationwide Enterprise Credit score Data Publicity System.
China launched the Massive Fund in 2014 as a way to speed up its semiconductor business, which is taken into account to lag behind that of america, Taiwan and South Korea. The group raised 138.7 billion yuan for its first fund, and 204 billion yuan for its second fund.
Reuters reported final month that the Massive Fund goals to lift about $40 billion in one other spherical, as China ramps up efforts to meet up with rivals.
The fund has nonetheless additionally been embroiled in a corruption scandal that led to a probe into its former head final yr.
($1 = 7.3162 Chinese language yuan renminbi)
(Reporting by Yelin Mo, Roxanne Liu in Beijing and Brenda Goh in Shanghai; Modifying by Simon Cameron-Moore)
