China chip maker ASR hits $1.6b valuation at Series D
ASR Microelectronics, a Shanghai-based manufacturer of chips for use in consumer electronics, has closed an extended Series D round of $119 million. The company is now valued at more than $1.6 billion.
The round was led by the China Internet Investment Fund, a RMB100 billion ($15 billion) vehicle sponsored by Cyberspace Administration of China (CAC), the country's internet oversight agency. TCL Capital joined as a strategic investor.
Other backers include Sequoia Capital China, and GL Ventures - the VC arm of Hillhouse Capital. Further commitments came from Shanghai government-related entities, including the Shanghai Free Trade Zone Equity Fund, Spinnotec and Zhangjiang Science & Technology Investment. The first tranche of the Series D, announced in February, featured Xiaomi Ventures, Industrial Securities Investment Management, Homsun Capital, and Jiuyou Capital, according to AVCJ Research.
Established in 2015 and headquartered in Shanghai Zhangjiang Hi-Tech Park, ASR produces chips used in smart phones, modems, and various handheld and internet-of-things (IoT) enabled devices. In 2017, the company acquired Marvell's mobile business unit to become one of only two China-based manufacturers of six-mode baseband chips, which are commonly used in smart phones.
The China Internet Investment Fund said it was encouraged by ASR's potential to tap into rising demand for IoT devices in China. Meanwhile, Sequoia is bullish about the prospects for the business acquired from Marvell.
ASR is well-positioned to benefit from China's ambition to become a global leader in semiconductor design and manufacturing. The company received two rounds of funding between 2015 and 2016 from SummitView Capital and Walden International, respectively. This was followed by a $100 million commitment from Alibaba Group and Shenzhen Capital Group in 2017 and another $100 million from IDG Capital in 2018.
Other recent investment activity in the semiconductor space includes a RMB200 million Series C for Yunyinggu, a manufacturer of integrated circuits used in flat-screen displays, and a $26 million Series A for Lightelligence, a US and China-based optical chip maker.
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