China wafer maker Zhongxin Jingyuan raises $511m

Several other state-backed investors were involved. They include SDIC Chuangyi, China SME Development Fund, Shanghai Guosheng Group, Hangzhou Qiantang Industrial Investment Fund, China Cinda Asset Management, Zhongjin Pucheng Investment, CCB International, and BoCom International.

There were also re-ups from existing investors such as Yangtze Optical Fibre & Cable, CICC Capital, Shanghai Free Trade Zone Fund, and Orient Securities Capital Investment.

CCMC was established in 2017 by Japanese wafer maker Ferrotec. In September 2020, Ferrotec sold a 60% interest to local government and private investment funds including CICC Capital and Oceanpine Capital. 

The company focuses on 6-inch, 8-inch and 12-inch silicon polishing wafers. The new capital will go towards the construction of a second production line for 12-inch wafers, with monthly output capacity set to reach 200,000 units by end of 2022.

China is building its own semiconductor supply chain and has stepped up efforts in response to US-imposed restrictions on access to the technology globally. Wafer manufacturing is a key part. While private equity funds mainly invest in high-growth, capital-light chip designers, government-backed funds are largely responsible for building foundries for wafer production.

The first National Integrated Circuit Industry Investment Fund (IC Fund) closed at RMB138 billion in 2014, with 65% of the capital going into foundries, 17% to chip design, 10% to packaging and testing, and 8% to materials. A successor vehicle launched in 2019 with initial capital of RMB200 billion.

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• Topics
• Greater China
• Expansion
• Technology
• China
• semiconductor
• CICC