China's GTA Semiconductor raises $1.85b

Participants included local and national level government guidance funds and financial and strategic investors, according to a statement issued by Mingsheng Capital, a Shenzhen-based private equity firm described as a specialist investor in the semiconductor industry.

AVCJ Research has records of two prior funding rounds for the company. In 2019, Shanghai Integrated Circuit Industry Investment Fund – which appears to be an offshoot of the National Integrated Circuit Industry Investment Fund, otherwise known as the IC Fund or Big Fund – paid CNY 1.8bn for a 45% stake.

Two years later, an investor group committed CNY 6.7bn for a 47.8% interest, while Huada Semiconductor, which already owned 55% of GTA, contributed CNY 1.3bn. The investor group included multiple government guidance funds and industry funds, including the China Internet Investment Fund. Shangqi Capital, an investment unit of SAIC Motor, and CPE were also listed as participants.

In addition, the same round is said to have featured Cathay Capital, which invested via the first of its dedicated China car technology funds.

Founded in 2017, GTA has two factories in Shanghai with a monthly production capacity – including under-construction capacity – of 280,000 wafers. It produces six-inch, eight-inch, and 12-inch wafers as well as silicon carbide – a key compound used in semiconductors – microcontrollers, analogue circuits, power units, and sensors.

Within the automotive industry, its chips feature in batteries, charging piles, and a wide range of in-car components, ranging from airbags and smart door controls to lighting and tire pressure gauges.

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• Topics
• Greater China
• Technology
• Industrials
• Expansion
• China
• semiconductor
• Growth capital