Leading Interconnect Semiconductor Technology, a Shenzhen-based integrated circuit (IC) packaging firm which specialises in the design and manufacture of advanced IC substrates, a key ingredient to connect the chip and circuit board, has notched $136 million from Shenzhen-listed printed circuit board maker Avary Holding, according to a filing on the Shenzhen Stock Exchange on Friday.
As a subsidiary of Taipei-listed Zhen Ding Technology Group, one of the world’s largest Printed Circuit Board (PCB) manufacturers, Avary is set to boost the Shenzhen-based firm’s registered capital by injecting cash worth $136 million.
Upon closing, Avary will be taking 8.47% stake at the firm, per the filing. The investment will help expand Avary ‘s business in the semiconductor area.
Monterey Park Finance Limited, the majority shareholder which owned 82.87% at Leading Interconnect Semiconductor Technology prior to the transaction, will see its stake drop to 72.84%. Monterey Park Finance Limited is a wholly-owned subsidiary of Zhen Ding Technology Group.
The investment comes at a time when semiconductor firms remains one of the most-invested industries in China. Semiconductor firms collectively raised nearly $1.2 billion in December, up 219.3% from $369 million in the previous month, while the deal count at 42 registered a significat month-over-month (MoM) growth of 68%.
China remains the world’s largest semiconductor market, as monthly sales of chips in the country stood at $13.4 billion in November 2022, or 29.4% of the global sales, according to the World Semiconductor Trade Statistics (WSTS). The US was the second largest market, with monthly sales of $12.1 billion, or 26.7% of the global sales.