Xiaomi hits $1.3b second close on semiconductor fund
Xiaomi Private Equity Fund Management, a unit of Chinese smart phone maker Xiaomi, has achieved a second close of CNY 9bn (USD 1.29bn) on a semiconductor fund targeting CNY 10bn.
There are five investors entering as part of the second close. They are Beijing Municipal Government Investment Guidance Fund Management which contributed CNY 2bn and is the largest LP; Hong Kong-listed software company Kingsoft (CNY 500m), Shanghai-listed Dioo Microcircuits (CNY 200m), Suzhou-based Nano Star Ventures (CNY 80m), and CNCB Haohong (CNY 20m).
The fund launched in 2021 and reached a first close of CNY 6.3bn in July 2022. This included state-backed investors Yizhuang International Investment and Tianjin Haichuang, which each committed CNY 1bn. Other LPs include Shanghai-listed GigaDevice Semiconductor and Nasdaq-listed Joyy. Xiaomi provided about USD 448m.
The name of the vehicle, Xiaomi Zhizao Fund, refers to smart manufacturing, but it will mainly focus on the integrated circuits. The term of the fund is eight years, plus two.
The strategy will encompass upstream and downstream fields covering new generation information technology, intelligent manufacturing, new materials, artificial intelligence, display and display devices, automotive electronics. Supply chains around consumer mobile terminals and smart devices are also part of the agenda.
“The company is of view that by taking this opportunity to, through the fund, invest in such industries that conform to the national innovation-driven development and industrial transformation trends, it may enable Kingsoft to achieve continuous optimisation of its asset allocation structure and to benefit from China’s fast-growing industries,” said Kingsoft in a statement.
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